Analysts forecast that there is still motivation for net buying from foreign investors in the future. (Photo: hsx.com.vn) Although foreign investors only net bought 400 billion VND (17 million USD) in fivetrading sessions in the past week, a sharp decrease compared to over 2.3trillion VND in the previous week, analysts forecast that there is still muchmotivation for net buying from foreign investors in the future.
Foreign investors’ net buying value on the Hanoi Stock Exchange (HNX) alsodecreased by 75.6% to 41 billion VND, while their net selling value on UPCOMtotalled 27 billion VND, an increase of 66.8% compared to the previous week.
In general, foreign investors net bought 340 billion VND on the matchingchannel and bought another 60 billion VND via the put-through channel.Regarding the buying side, foreign investors focused on collecting Vinhomes(VHM) shares, Hoa Phat Group (HPG), Viet Capital Inc (VCI), PetroVietnam Ca MauFertiliser JSC (DCM), and PVPower (POW).
The information that is supposed to support foreign capital flow into the stockmarket this month is that Fubon Fund has approved the 5th additional capitalraising with about 160 million USD. Meanwhile, VanEck fund will change itsreference index, raising it from 80% to 100% of Vietnamese stocks from March17, meaning that it can buy about 2.3 trillion VND in the market.
According to the founder of ART Investor Vu Duc Nam, ETFs including Fubon, VanEckand VNM funds are expected to disburse soon.
The State Bank of Vietnam’s issuance of two decisions to reduce the operatinginterest rate from March 15 is also expected to direct the cash flow back intothe market stock market, especially cash flow from foreign investors.
The corporate bond market also made initial improvements after the Governmentissued Decree No 08/2023/ND-CP dated March 5, 2023, to amend, supplement andsuspend a number of articles in the Decrees regulating the private placement ofcorporate bonds for sale and transactions in the domestic market and the offerfor sale of corporate bonds in the international market.
According to data from the Vietnam Bond Market Association (VBMA), as of March17, 2023, there were six separate issuances of corporate bonds with a totalissuance value of 11.93 trillion VND.
In March 2022 alone, there were two corporate bond issuances to the public and10 private corporate bond issuances with a total issuance value of 3.62trillion VND.
Matthew Smith, Research Director of Yuanta Securities Vietnam, said that theliquidity prospect of the financial system might be loosened and interest rateswould cool down, which would benefit the financial assets.
Accordingly, Vietnam is maintaining a "golden population" structure.The middle class and urbanisation help increase domestic demand, FDI growthhelps many export businesses develop. In particular, the price-to-earningsratio (P/E) in 2023 is about 9-10x, the lowest in Asia, so the stock market isstill very attractive to institutional investors and foreign investors.
According to this expert's forecast, Vietnam's stock market will recover andmay enter the "bull market" as it has recovered 20% since the bottomof September last year. The VN-Index target is predicted to reach 1,300 pointsthis year.
In the next trading week, the market will receive important macro information,such as GDP growth in the first quarter, and CPI in the first quarter. At thesame time, some businesses may publish estimated business results. This will bea factor that can support investors' sentiment in the future./.
VNA
