The Vietnamese stock market recorded a positive trading week of 14-18.7 with 3/5 trading sessions increasing by over 10 points/session and explosive liquidity with an average trading value of nearly VND34,000 billion/session.
The industries with the most active and continuous attraction of cash flow circulating in the market are real estate, securities, banking and retail. active demand from domestic investors replaced the sharp decline in net buying from foreign investors compared to the previous trading week.
At the end of the week, VN-Index closed at 1,497.28, up 39.52 points compared to the previous week, equivalent to 2.71%.
Regarding the trading value of foreign investors, this group of investors had another week of net buying of thousands of billions of VND, but the value had cooled down significantly towards the end of the week. Accumulated to 5 sessions, foreign investors net bought approximately VND1,300 billion, recording the 7th week this year that foreign investors have net disbursed Vietnamese stocks.
Although it is not possible to confirm the continuous long-term net buying cycle of foreign investors, from the perspective of Dr. Nguyen Duy Phuong, Director of Strategic Investment of DG Capital, the signal of foreign investors returning to strong net buying last week is a notable start, reflecting the change in perspective and preparation of foreign capital flows for long-term opportunities in Vietnam.
Expectations of a reversal of foreign capital flows are reasonable, because they will return when they see profit potential in parallel with macro stability and specific upgrading orientation of the market. Vietnam needs to continue to maintain macroeconomic stability, improve foreign rum, improve transparency and quality of listed enterprises so that this positive signal becomes a long-term capital flow, contributing to raising the level of the Vietnamese stock market in the coming period, Dr. Phuong stated his opinion.
Investors expect foreign investors to continue to maintain a net buying state again, especially when Vietnam's market upgrade plan is being directed by the Government very strongly.
In particular, the urgent operation of the KRX trading system is a big step forward, enhancing market position in the eyes of international rating organizations. In addition, the P/E valuation of the whole market is still below the 5-year average, and is lower than some markets in the region, meaning that market valuation is still relatively attractive.
Currently, the ownership ratio of foreign investors on the HOSE is at 16.2%, contributing significantly to market capitalization of more than 260 billion USD, showing its role as an important financial resource for the economy. Foreign capital will supplement long-term capital and increase liquidity, contributing to improving financial capacity for businesses and creating depth for the market.
