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Saturday, July 27, 2024

Foreign investors remain cautious

By Dung Nguyen

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Despite persistent net outflows by foreign investors, analysts anticipate a potential upturn in indirect investment inflows in the coming year as macroeconomic conditions strengthen. However, achieving the long-term goal of enhancing stock quality and market structure remains a crucial focus. Foreign investors maintain net selling trend Foreign investors intensified their net selling on the Vietnamese stock market during the week ending November 17, with net outflows surging by 10.3% to reach VND1,345 billion. Out of the five trading sessions, foreign capital recorded net selling in four, with only a net buy on November 15, amounting to VND241.7 billion. While foreign investors remained consistent in their heavy selling, domestic institutional and proprietary investors bucked the trend, continuing their net buying momentum. Domestic institutional investors injected VND1.1 trillion, while their proprietary counterparts contributed VND841 billion to the market. Despite individual investors maintaining a dominant 90% share of trading activity, the cautious stance adopted by foreign investors placed huge pressure on the VN-Index. The month of October saw a stark contrast in the investment strategies of retail and foreign investors. While individual investors continued their net buying spree, foreign investors remained cautious, primarily engaging in net selling within the retail, banking, and beverage […]
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