Net foreign sells continue to dampen stock markets
Net foreign sells continue to dampen stock markets
Net selling by the foreign sector continued to weigh on the domestic stock market last week with the market volumes and values decreasing further on both exchanges.
Foreign investors were net buyers by more than VND24 billion (US$1.1 million) in share value on the Ha Noi Stock Exchange last week but they unloaded shares on the HCM City bourse, responsible for a net sell of nearly VND100 billion ($4.8 million).
According to many analysts, though the value of their net sells was just one sixth of the value recorded in the previous week, their sells focused on major stocks, including VinGroup (VIC), Masan Group (MSN) and Hoang Anh Gia Lai Group (HAG), which raised investors' caution.
On the HCM City Stock Exchange, the benchmark VN-Index rose by 0.94 per cent over the course of the week, closing Friday at 485.66 points. The VN30 tracking the top 30 shares by market capitalisation and liquidity was also up 0.9 per cent at 543.38 points.
The market volume decreased over 11 per cent against the previous week, however, averaging 39 million shares worth nearly VND725 billion ($34.5 million) per session.
According to analysts of vietstock.vn, the VN-Index failing to surpass the psychological barrier of 490 points accompanied by waning liquidity throughout the week dampened investor sentiment.
"This pushed up the short-term selling, mainly in blue chips, and pulled down the whole market," analysts wrote in a report.
On the Ha Noi Stock Exchange, the HNX-Index declined 0.11 per cent to close last week's trades at 62.69 points.
The daily trading volume fell 38.5 per cent from the previous week's level, reaching over 23 million shares worth VND174 billion ($8.3 million) per session.
Fuel price hike and low Purchasing Managers Index (PMI) in June were also attributed to sluggish investor psychology.
"PMI declined from 48.4 points in May to 46.4 points in June. This sharp decline continued to show the prolonged business difficulties of domestic companies," analysts of FPT Securities Co commented on a report. Volatility on the gold market in recent days also attracted investor attention and made them reluctant to invest money in the stock market, they added.
"Without supportive economic information this week, the market would likely decline. In our opinion, investors should wait for more positive development from liquidity to have a better market direction."
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