International investors returning to Vietnam equity market

As reported by Thomson Reuters news agency, in July the cash flows from international investors tended to return to Vietnam equity market though the trading volume was not much.

There was also a strong participation of foreign investors in the bond market in the first six months. It is probably the rare bright spot in the current lack of supporting information in the market.

According to Thomson Reuters’s statistics, in this July international investors stopped net selling chain during Q2. Hanoi Stock Exchange (HNX) also said that in the first six months international investors also traded strongly in the bond market with the total trading volume up to 20 percent of the total market trading value.

Le Tuan Hung, analyst of IVS Securities Co said: “I think they are positive signs. The market is usually assessed through psychology and cash flow. Current cash flow show signs of rebound.”

On the other sides, this phenomenon has only been temporary net sales suspending move of foreign investors, but it is not sure about the return of cash flows into the market.

Nguyen Huu Viet, Head of analysing department-IRS Securities Co said: “It is probably a temporary stop in net sales chain of international investors. This is just a positive spot that shows a market is under less pressure.”

However, experts also said that recently there has been much more investors who opened accounts and were granted their transaction numbers. This trend is likely to catch up in the future.

Nguyen Xuan Binh, deputy head of analysing department- Bao Viet Securities Co said: “In the future, two factors attracting international capital inflows are banks’ solutions to deal with bad debts and the improvement of total domestic and international demand. These factors help international capital inflows continue to flow into Vietnam’s stock market.

Financial statements enterprise has recently announced in Q2 profit levels of the enterprises increased by 25 percent year-on-year in general. Although this number was not huge, it shows up the improving business situation of some enterprises and it is also the factor that attracts investors.

 

Category: Stocks