Many factors support foreign capital flow

Many factors are expected to draw cash flow back to the stock market, especially that from foreign investors.

Many factors support foreign capital flow hinh anh 1

Analysts forecast that there is still motivation for net buying from foreign investors in the future. (Photo: hsx.com.vn)

Many factors are expected to draw cash flow back to the stock market, especially that from foreign investors.

Although foreign investors only net bought 400 billion VND (17 million USD) in five trading sessions in the past week, a sharp decrease compared to over 2.3 trillion VND in the previous week, analysts forecast that there is still much motivation for net buying from foreign investors in the future.

Foreign investors’ net buying value on the Hanoi Stock Exchange (HNX) also decreased by 75.6% to 41 billion VND, while their net selling value on UPCOM totalled 27 billion VND, an increase of 66.8% compared to the previous week.

In general, foreign investors net bought 340 billion VND on the matching channel and bought another 60 billion VND via the put-through channel. Regarding the buying side, foreign investors focused on collecting Vinhomes (VHM) shares, Hoa Phat Group (HPG), Viet Capital Inc (VCI), PetroVietnam Ca Mau Fertiliser JSC (DCM), and PVPower (POW).

The information that is supposed to support foreign capital flow into the stock market this month is that Fubon Fund has approved the 5th additional capital raising with about 160 million USD. Meanwhile, VanEck fund will change its reference index, raising it from 80% to 100% of Vietnamese stocks from March 17, meaning that it can buy about 2.3 trillion VND in the market.

According to the founder of ART Investor Vu Duc Nam, ETFs including Fubon, VanEck and VNM funds are expected to disburse soon.

The State Bank of Vietnam’s issuance of two decisions to reduce the operating interest rate from March 15 is also expected to direct the cash flow back into the market stock market, especially cash flow from foreign investors.

The corporate bond market also made initial improvements after the Government issued Decree No 08/2023/ND-CP dated March 5, 2023, to amend, supplement and suspend a number of articles in the Decrees regulating the private placement of corporate bonds for sale and transactions in the domestic market and the offer for sale of corporate bonds in the international market.

According to data from the Vietnam Bond Market Association (VBMA), as of March 17, 2023, there were six separate issuances of corporate bonds with a total issuance value of 11.93 trillion VND.

In March 2022 alone, there were two corporate bond issuances to the public and 10 private corporate bond issuances with a total issuance value of 3.62 trillion VND.

Matthew Smith, Research Director of Yuanta Securities Vietnam, said that the liquidity prospect of the financial system might be loosened and interest rates would cool down, which would benefit the financial assets.

Accordingly, Vietnam is maintaining a "golden population" structure. The middle class and urbanisation help increase domestic demand, FDI growth helps many export businesses develop. In particular, the price-to-earnings ratio (P/E) in 2023 is about 9-10x, the lowest in Asia, so the stock market is still very attractive to institutional investors and foreign investors.

According to this expert's forecast, Vietnam's stock market will recover and may enter the "bull market" as it has recovered 20% since the bottom of September last year. The VN-Index target is predicted to reach 1,300 points this year.

In the next trading week, the market will receive important macro information, such as GDP growth in the first quarter, and CPI in the first quarter. At the same time, some businesses may publish estimated business results. This will be a factor that can support investors' sentiment in the future./.

en.vietnamplus.vn

Related News

Investors play a key role in developing the industrial park system

Investors play a key role in developing the industrial park system

VCN - Dr. Phan Huu Thang, Chairman of the Executive Committee of the Vietnam Industrial Park Finance Association, former Director of the Foreign Investment Department (Ministry of Planning and Investment), said that basically, developing an industrial park successfully or not mainly depends on businesses, entrepreneurs - industrial park investors.
Improving legal framework, ensuring accessibility to green bonds

Improving legal framework, ensuring accessibility to green bonds

VCN - This is the recommendation of Mr. Nguyen Tung Anh (photo), Head of Credit Risk Research and Sustainable Financial Services (FiinRatings) in an interview with Customs Magazine reporters about green bond market development in Viet Nam.
Businesses manage to relieve cash flow pressure

Businesses manage to relieve cash flow pressure

VCN - In early 2024, positive signs of the economy have returned. Exports grow; orders gradually come to the business community. However, businesses are still facing many difficulties and challenges, impacted by the decline of the world economy... Especially the pressure on capital for production and business activities was recovered and stabilized.
Mechanisms for bolstering "bolder" and more efficient credit flow

Mechanisms for bolstering "bolder" and more efficient credit flow

VCN - Banks are actively channeling credit towards the manufacturing and business sectors, always standing by to offer loans to enterprises. However, this endeavor requires additional conditions as well as coherent support from the broader economy to augment the "boldness" and efficacy of these capital flows.

Latest News

Government’s action programme cracks down on illegal fishing

Government’s action programme cracks down on illegal fishing

A raft of measures to deal with illegal, unreported and unregulated (IUU) fishing is included in the Government’s freshly issued action programme as the country is striving to clamp down on illegal fishing, or else it will be hit by the European Commission (EC)’s warning card.
PM calls on ASEAN to pen strategic development vision

PM calls on ASEAN to pen strategic development vision

The Association of Southeast Asian Nations (ASEAN) should have a strategic and comprehensive vision, and improve its resilience capacity to grasp opportunities and handle global headwinds for stable and sustainable development, Prime Minister Pham Minh Chinh said on April 23.
Forum to discuss new initiatives on ASEAN future vision: Deputy FM

Forum to discuss new initiatives on ASEAN future vision: Deputy FM

The ASEAN Future Forum 2024 (AFF 2024), which will take place in Hanoi on April 23, is expected to create a platform for stakeholders to contribute ideas and initiatives on the Association of Southeast Asian Nations (ASEAN)’s future vision, Vietnamese Deputy Minister of Foreign Affairs Do Hung Viet has said.
Green transformation and ESG practice to participate in the global competition

Green transformation and ESG practice to participate in the global competition

VCN - Vietnam is in a transition period from encouraging to mandating green and sustainable criteria so as not to fall behind or be excluded from the green transformation trend that is taking place strongly around the world.

More News

Factors influencing Vietnam’s FMCG market

Factors influencing Vietnam’s FMCG market

Economic outlook, demographic transformation and changing consumer trends are among macro shifts reshaping Vietnam’s fast-moving consumer goods (FMCG) landscape, according to marketing data and analytics company Kantar Worldpanel.
Shrimp exports to major markets bounce back

Shrimp exports to major markets bounce back

Having identified its weakness in 2023, entering the first quarter of 2024, Vietnam's shrimp industry has undergone a clear change, reflected through increases in exports to major markets.
Quang Ninh aims to become international tourism hub

Quang Ninh aims to become international tourism hub

Quang Ninh aims to become an international tourism hub and a world leading destination by 2050 through establishing the brand of Ha Long Bay - Bai Tu Long Bay as a landscape paradise and harmonising the development of economic-social-environmental ecosystems, along with raising the quality of life of local residents to meet international standards.
Measures sought to boost Vietnam - Russia digital economic cooperation

Measures sought to boost Vietnam - Russia digital economic cooperation

The Vietnamese Embassy in Russia organised a seminar on April 19 on prospects for Vietnam-Russia digital economic cooperation, attracting over 100 delegates representing ministries, sectors, research institutes, and business associations of the two countries.
Vietnam becomes biggest rice supplier for Singapore

Vietnam becomes biggest rice supplier for Singapore

Vietnam has for the first time surpassed India and Thailand to become the largest rice exporter to Singapore by shipping 36.15 million SGD (26.55 million USD) worth of rice in the first three months of this year, an increase of 80.46% over the same period in 2023, winning 32.03% of the market share, according to the Vietnam Trade Office in Singapore.
New fulcrums for economic growth

New fulcrums for economic growth

VCN - According to experts, despite the improvement, Vietnam's economy in 2024 still has potential risks, weighing on growth solutions until the end of the year. Accordingly, the application of science and technology, innovation, and green transformation are considered important factors and new growth drivers for Vietnam.
Opportunity for a high open economy like Vietnam

Opportunity for a high open economy like Vietnam

VCN - According to economic expert Nguyen Bich Lam (photo), in 2024, our country's economy will have bright spots, with opportunities that not every country has to more effectively promote existing dynamics and create new driving forces for development.
Cooperation with Vietnam among EU’s priorities in Indo-Pacific: official

Cooperation with Vietnam among EU’s priorities in Indo-Pacific: official

The Vietnamese Embassy in Belgium - the Vietnamese Delegation to the European Union (EU) held a meeting with the Asia-Oceania Working Party (COASI) of the EU Council on April 17 to update the latter on the country’s socio-economic situation and foreign policy and suggest cooperation areas to be promoted.
Overseas remittances to HCM City record highest increase in three years

Overseas remittances to HCM City record highest increase in three years

Overseas remittances to Ho Chi Minh City exceeded 2.86 billion USD in the first quarter of 2024, an annual increase of 35.4% and the highest recorded in three consecutive years.
Read More

Your care

Latest Most read
Government’s action programme cracks down on illegal fishing

Government’s action programme cracks down on illegal fishing

A raft of measures to deal with illegal, unreported and unregulated (IUU) fishing is included in the Government’s freshly issued action programme as the country is striving to clamp down on illegal fishing, or else it will be hit by the European Commission (EC)’s warning card.
PM calls on ASEAN to pen strategic development vision

PM calls on ASEAN to pen strategic development vision

The Association of Southeast Asian Nations (ASEAN) should have a strategic and comprehensive vision, and improve its resilience capacity to grasp opportunities and handle global headwinds for stable and sustainable development, Prime Minister Pham Minh Chinh said on April 23.
Forum to discuss new initiatives on ASEAN future vision: Deputy FM

Forum to discuss new initiatives on ASEAN future vision: Deputy FM

The ASEAN Future Forum 2024 (AFF 2024), which will take place in Hanoi on April 23, is expected to create a platform for stakeholders to contribute ideas and initiatives on the Association of Southeast Asian Nations (ASEAN)’s future vision, Vietnamese Deputy Minister of Foreign Affairs Do Hung Viet has said.
Investors play a key role in developing the industrial park system

Investors play a key role in developing the industrial park system

VCN - Dr. Phan Huu Thang, Chairman of the Executive Committee of the Vietnam Industrial Park Finance Association, former Director of the Foreign Investment Department (Ministry of Planning and Investment), said that basically, developing an industrial par
Green transformation and ESG practice to participate in the global competition

Green transformation and ESG practice to participate in the global competition

Vietnam is in a transition period from encouraging to mandating green and sustainable criteria so as not to fall behind or be excluded from the green transformation trend
Mobile Version