Capital continue to flow out from ETFs

31-Oct-2018 Intellasia | Dien dan Doanh nghiep | 6:00 AM Print This Post

The general trend of Exchange Traded Funds (ETFs) last week was net capital withdrawal, although the pace has slowed down compared to the period of early October.

The trading session in the week of 22nd to 26th October was not really a good week for the Vietnam stock market. The fluctuations in international markets have had a severe impact on the sentiment of domestic investors and the red has covered the market in all the trading sessions.

Ending the trading week, VN Index stopped at 900.82 points, down six percent compared to the previous week and was the fourth correction week in a row. The drop in the market last week was not only due to the psychological effect from the international market, but also partly due to the movements of ETFs when capital from these funds was continued to be withdrawn.

Fund VFMVN30 ETF managed by VietFund Management Joint Stock Company (VFM) was net withdrawn one million fund certificates, equivalent to 15 billion dong. Since the beginning of October, VFMVN30 ETF was withdrawn by 4.2 million fund certificates, equivalent to 48 billion dong.

Last week also saw a net sell of VanEck Vectors Vietnam ETF (VNM ETF), focusing on stock s of Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank, code: STB), Vincom Retail Joint Stock Company (code: VRE) and Saigon Securities Incorporation (code: SSI); only stock of Masan Group Corporation (code: MSN) was net purchased.

Specifically, STB, VRE and SSI were net sold by VNM ETF last week with over 100,000 shares. Stocks of Hoa Phat Group Corporation (code: HPG), Thanh Thanh Cong Bien Hoa Sugar Joint Stock Company (code: SBT), Vinhomes Joint Stock Company (code: VHM), Novaland Group Joint Stock Corporation code: NVL), Vinaconex Corporation (code: VCG), Hoang Huy Group (code: TCH), FLC Faros Joint Stock Company (code: ROS), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank, code: VCB), Vingroup Joint stock Company (code: VIC) and PetroVietnam Fertilisers and Petrochemicals Joint Stock Company (code: DPM) were net sold with 50,000-100,000 shares. Meanwhile, stocks of Vietnam Dairy Products Joint Stock Company (code: VNM), PVPower Nhon Trach 2 Joint Stock Company (code: NT2) and Bao Viet Holding Corporation (code: BVH) were net sold with 30,000-50,000 shares.

Remarkably, MSN stocks were still net purchased by VNM ETF with over 291,000 shares last week.

As of 26th October, the net asset value of VanEck Vectors Vietnam ETF was $323.4 million, down about $18.7 million compared to the previous week. Net asset value (NAV) and fund certificate price were $14.97 and $14.87 per certificate respectively, lower than the level of $15.77 and $ 15.59 per certificate last week.

Meanwhile, other ETFs such as Db x-trackers FTSE Vietnam ETF (FTSE Vietnam ETF), ishare MSCI Frontier 100 ETF, and Kindex Vietnam VN30 ETF have not had any capital withdrawal or mobilisation in the past week.

The continued withdrawal of ETFs was still a bad movement because statistics show that the movements of the Vietnam stock market were often in line with the withdrawal or mobilisation of funds from ETFs. Therefore, investors should pay special attention to the dynamics of cash flows of ETFs to make reasonable investment decisions.


Category: Stocks, Vietnam

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