Developed countries have started to change their monetary policies from tightening to easing. Will foreign capital return to Vietnam’s stock market, and what additional momentum is needed for the market’s VN-Index to surpass 1,300 points? Foreign investors have returned On September 18, 2024, the U.S. Federal Reserve (Fed) decided to lower interest rates by 0.5 percentage point, signaling the beginning of a monetary easing cycle. This news caused the U.S. Dollar Index (DXY) to continue dropping to around 100.4 points, and the Vietnamese dong has strengthened against the U.S. dollar to around VND24,600, compared to the start of 2024. Trade by foreign investors on the Vietnam stock market has also become more active, shifting from net selling to net buying in the final sessions of September 2024. Specifically, as of September 27, 2024, the cumulative net selling value of foreign investors on the stock market exceeded VND65.6 trillion, the highest in many years. However, the net selling value in September alone was only VND1.6 trillion, a sharp drop from over VND16.5 trillion in June 2024. If we exclude the block sale of VIB shares on September 24, 2024, valued at about VND2.7 trillion, foreign investors were already net buyers in […]
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