Tuesday , July 16 2024

Foreign investors divest $1B in Ho Chi Minh bourse in 2023

Foreign investors pulled VND24.8 trillion (US$1 billion) out of the Ho Chi Minh Stock Exchange in 2023 and shifted it mostly to developed markets, according to analysts.

They bought VND314.9 trillion and sold VND339.7 trillion worth of stocks, bonds, fund certificates, ETFs, and covered warrants, according to statistics from the stock exchange.

From January they were net sellers for 11 months, peaking at VND9.97 trillion in December, which was also their highest monthly divestment since May 2021.

But their net sales for the year were only 43% of the VND58.05 trillion in 2021.

In a recent note investment consulting firm FIDT said the figures were not too concerning since the VN-Index still closed 12% up for the year at 1,129.9.

But it admitted that foreigners’ investment choices could influence market trends and the overall market sentiment.

Most of the stocks sold by foreign investors were in the food and beverage, real estate, retail, and financial services sectors, especially banking, according to FIDT statistics.

SSI Securities’ SSI Research said foreigners focused on large-cap stocks.

Lender Eximbank was the most sold (VND4.6 trillion), followed by private lender VPBank, electronics retail chain Mobile World, real estate developer Vinhomes, and dairy giant Vinamilk, according to SSI Research.

Hoa Phat Group attracted the most interest with VND3.3 trillion worth of buying seen in the steel company’s stocks.

Steel giant Hoa Sen Group, logistics provider Sotrans, chemicals company Duc Giang, and retailer FRT were also bought by foreign investors, according to SSI Research.

Stock analysis platform FiinTrade said the net selling in Vietnamese stocks was to restructure portfolios.

Analysts at SGI Capital said foreign investors saw risks in some stocks but were positive about the market as a whole.

Mirae Asset head analyst for retail, Dinh Minh Tri, said portfolio investors sold in Vietnam and moved their money to developed markets, which they expect to recover as interest rates fall early next year.

This has also been seen in the China, South Korea, Hong Kong, and Thailand markets, he added.

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