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

Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.
“New path” for small and micro enterprises to access capital

“New path” for small and micro enterprises to access capital

VCN - Small and micro enterprises and business households are often classified as high-risk, so banks are not interested in granting credit. Therefore, improving efficiency and promoting the application of technology for financial inclusion is the way for these enterprises to access capital.
Vietnam

Vietnam's economy is recovering well

VCN - According to Dr. Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR), by the end of the third quarter of this year, Vietnam's economy had recovered relatively well amid optimism about the overall growth of the world economy in late 2024 and 2025.

Latest News

Vietnam resolved to boost digital economy with national action plan

Vietnam resolved to boost digital economy with national action plan

Vietnam has adopted a national action plan on digital economy development, which outlines key tasks and solutions for the 2024-2025 period.
NA Chairman departs for official visit to Cambodia

NA Chairman departs for official visit to Cambodia

National Assembly Chairman Tran Thanh Man and a high-ranking delegation of Vietnam’s Party and State left Hanoi on November 21 for an official visit to Cambodia, where the top legislator will attend the 12th General Assembly of the International Conference of Asian Political Parties (ICAPP) and the 11th Plenary Session of International Parliament for Tolerance and Peace (IPTP).
Innovating gold market management mindset

Innovating gold market management mindset

VCN - To better manage the gold market in the current context, Ass. Professor Dr. Nguyen Thuong Lang, Senior Lecturer at the Institute of International Trade and Economics, National Economics University, believed that a shift in gold market management was needed. Moving away from administrative control toward more economically driven mechanisms and policies is essential.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.

More News

Vietnam-Cambodia relations expected to enter new development period: official

Vietnam-Cambodia relations expected to enter new development period: official

The upcoming trip to Cambodia by National Assembly (NA) Chairman Tran Thanh Man is expected to advance the relations between the two countries into a new development period on the basis of equality, mutual benefit, effective cooperation, and respect for each other's interests, a legislator has said.
Vietnam emerges as forerunner in global nearshoring trend

Vietnam emerges as forerunner in global nearshoring trend

Vietnam has emerged as a leading destination for companies relocating their production facilities, aiming to protect supply chains from potential disruptions, according to an article published by Brazil’s riotimesonline.com on November 17.
PM’s visit to Dominican Republic to cement ties

PM’s visit to Dominican Republic to cement ties

Following his trip to Rio de Janeiro Brazil for the G20 Summit and bilateral engagements, Prime Minister Pham Minh Chinh, accompanied by his spouse and a high-ranking Vietnamese delegation, is set to embark on an official visit to the Dominican Republic from November 19-21.
Top 500 Largest Enterprises in Vietnam in 2024: Affirming the ability to overcome "headwinds"

Top 500 Largest Enterprises in Vietnam in 2024: Affirming the ability to overcome "headwinds"

VCN - On November 8, 2024, Vietnam Report in collaboration with VietNamNet Newspaper announced the VNR500 Ranking - Top 500 Largest Enterprises in Vietnam in 2024. The indicators under the VNR500 Ranking show that the business performance has been positive although there are still "headwinds".
"Explosion" of aviation retail with new services

"Explosion" of aviation retail with new services

VCN - With many large investment projects, Vietnam is considered a potential destination for the aviation trade industry in the Asian region, in which aviation retail will "explode".
PM attends Vietnam-Brazil business forum ​in Rio de Janeiro

PM attends Vietnam-Brazil business forum ​in Rio de Janeiro

Prime Minister Pham Minh Chinh attended a Vietnam-Brazil business forum in Rio de Janeiro on 17 November afternoon (local time) as part of his trip to Brazil for attendance at the G20 Summit and bilateral activities in the Latin American country.
Party leader requests extra efforts to fulfill education, training reform goal

Party leader requests extra efforts to fulfill education, training reform goal

Party General Secretary To Lam attended a meeting with outstanding teachers and education managers in Hanoi on November 18, during which he asked for stronger efforts to complete the goal of education and training reform.
PM urges IMF to continue supporting Việt Nam

PM urges IMF to continue supporting Việt Nam's macroeconomic development

Prime Minister Phạm Minh Chính received a delegation of the International Monetary Fund (IMF)’s 2024 Article IV Mission to Việt Nam led by its head Paulo Medas in Hà Nội on November 15.
State President concludes official visit to Peru, attendance at APEC Leaders’ Week

State President concludes official visit to Peru, attendance at APEC Leaders’ Week

State President Luong Cuong and a high-ranking delegation of Vietnam left Lima on November 16 afternoon (local time), concluding their official visit to Peru and attendance at the 2024 APEC Leaders’ Week at the invitation of Peruvian President Dina Boluarte.
Read More

Your care

Latest Most read
Vietnam resolved to boost digital economy with national action plan

Vietnam resolved to boost digital economy with national action plan

Vietnam has adopted a national action plan on digital economy development, which outlines key tasks and solutions for the 2024-2025 period.
NA Chairman departs for official visit to Cambodia

NA Chairman departs for official visit to Cambodia

National Assembly Chairman Tran Thanh Man and a high-ranking delegation of Vietnam’s Party and State left Hanoi on November 21 for an official visit to Cambodia, where the top legislator will attend the 12th General Assembly of the International Conference of Asian Political Parties (ICAPP) and the 11th Plenary Session of International Parliament for Tolerance and Peace (IPTP).
Innovating gold market management mindset

Innovating gold market management mindset

To better manage the gold market in the current context, Ass. Professor Dr. Nguyen Thuong Lang, believed that a shift in gold market management was needed.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.
Vietnam-Cambodia relations expected to enter new development period: official

Vietnam-Cambodia relations expected to enter new development period: official

The upcoming trip to Cambodia by National Assembly (NA) Chairman Tran Thanh Man is expected to advance the relations between the two countries into a new development period on the basis of equality, mutual benefit, effective cooperation, and respect for each other's interests, a legislator has said.
Mobile Version