Although trading was less active than the general market, with strong net selling momentum of HPG steel shares, foreign investors net sold VND825 billion in the last week of August.
According to statistics on the HOSE floor, foreign investors were net sellers for 4 sessions and net buyers for only 1 session on August 30. In total, this group net sold 80.13 million units, with a net selling value of 796.22 billion VND, an increase compared to last week.
On the HNX, foreign investors have been net sellers for 5 consecutive sessions. In total, this group net sold 4.04 million units during the week, with a total net selling value of VND89.46 billion.
On the HOSE, foreign investors net bought the most FPT shares with a value of VND616.35 billion, equivalent to a net buying volume of 4.62 million units. On the contrary, this group continued to net sell the most HPG shares with a volume of 29.27 million units, a net selling value of VND755.08 billion. Last week, HPG shares were net sold for nearly VND640 billion.
On the HNX, this group bought the most IDC shares with a volume of 603,350 units, net buying value of 36.7 billion VND. On the other hand, SHS shares were sold the most with a volume of 2.5 million units, corresponding to a net selling value of 41.49 billion VND. Next was PVI, which was sold 1.23 million units, net selling value of 64.49 billion VND.
According to experts, in addition to facing global cash flows withdrawing from frontier and emerging markets due to the outstanding growth of the US economy, the wave of rushing into technology stocks following the explosion of artificial intelligence (AI), and global geopolitical risks, the Vietnamese stock market also faces a strong net withdrawal of ETF funds focusing on Vietnam.
In the short term, foreign net selling pressure is likely to remain, but this pressure is forecast to gradually decrease from the end of the third quarter of 2024.
According to signals from the Fed, it is highly likely that the Fed will lower interest rates at its upcoming meeting. Dr. Nguyen Duy Phuong, Investment Director of DG Capital, commented that in previous periods, the Fed only reduced interest rates when the economy was very bad, but this interest rate cut by the Fed is when the economy begins to recover and the long-term tight monetary policy needs to be reduced for the economy to continue to recover. This interest rate cut by the Fed may take place very cautiously, but is still enough to reassure investors and please the market. This will be a positive point not only for the world stock market but also for the Vietnamese market.
In addition, the State Securities Commission (SSC) is currently preparing to announce and solicit public comments on the second version of the draft Circular (version 1 in March 2024), which is expected to be the final version, to change many regulations related to pre-funding - the final barrier for Vietnam to be upgraded to an emerging market by FTSE.
Therefore, experts also expect that the pre-funding requirement will be officially eliminated in the third quarter of 2024 and FTSE will upgrade Vietnam to an emerging market in September 2025, or in March 2025. Thereby, it is expected that foreign capital will flow into Vietnam in the period of 6-12 months before this event.
