Foreign investors continue to net sell but have decreased

During the past week, trading from September 9-13 across the market, foreign investors net sold 57.9 million units with a total net selling value of VND1,175.94 billion, a slight decrease of 3.65% in value compared to the previous week.

According to statistics on the HOSE, foreign investors were net sellers for 4 sessions and net buyers for 1 session with a total net selling value of VND1,165 billion, down 4.96% compared to the previous week. On the HNX, foreign investors were net sellers for 2 sessions and net buyers for 3 sessions, with a total net selling value of VND17.26 billion, compared to a net buying value of VND26.92 billion last week. On the UPCoM market, foreign investors were net sellers for 2 sessions and net buyers for 3 sessions, with a total net buying value of VND6.54 billion, compared to a net selling value of VND7.08 billion last week.

Looking back at the stock market since the beginning of the year, foreign investors' transactions have not shown any signs of improvement as strong net selling pressure has been maintained throughout the months, except for January 2024 when net buying was maintained at over VND 1,100 billion.

Meanwhile, the lowest net selling month was February, reaching nearly VND1,500 billion, and May was the strongest net selling month with a value of more than VND19,000 billion. In total, in the first 8 months of the year, foreign investors net sold a record VND65,000 billion.

According to experts, the net withdrawal trend of foreign investors is within the forecast. As the upward trend of the exchange rate continues, net selling pressure from foreign investors may still occur in the coming time.

According to analysis by Yuanta Vietnam Securities, the trend of foreign investors will reverse to net buying when two factors occur. One is that it will fall around the last 6 months of the year when the Fed starts to lower interest rates. Or the State Bank of Vietnam will raise the basic interest rate, narrowing the gap between VND and USD interest rates, reducing exchange rate pressure.

“When the exchange rate cools down, foreign investors will likely return to net buying. Sooner or later, the Fed will lower interest rates, the State Bank of Vietnam will likely raise interest rates again, and sooner or later, foreign investors will return to net buying,” said a representative of Yuanta Vietnam Securities.