Vietnamese stocks experienced a volatile week with three deep bearish trading sessions among low overall liquidity due to massive sell-offs by foreign investors. The benchmark VN Index on the HCM Stock Exchange increased by 1.42 per cent to close Friday at 983.17 points, posting a weekly decline of 3.28 per cent. The HNX Index on the Ha Noi Stock Exchange gained 1.65 per cent to end last week trading at 111.98 points, but falling 3.37 per cent on-week. Foreign selling pressure weighed on the stock market, negatively affecting the sentiment of domestic investors. Foreigners sold a net value of over VND480 billion (US$21 million) on the two bourses; VND398.9 billion on the HOSE and VND81.8 billion on the HNX. According to a report by SSI Research, foreigners were net sellers last week because they had adjusted their investment portfolios to balance their lists by selling out old shares to purchase new ones. For example, FTSE Vietnam ETF and VNM ETF’s recent reviews of their investment portfolios had been a burden on the stock market and affected the indexes in a systematic way. Two weeks ago, the US Federal Reserve announced a rate hike decision and signalled two more hikes this year, also resulting in a worldwide withdrawal of foreign capital from emerging and frontier markets. With investor confidence was down, average trading liquidity fell last week. More than 206.3 million shares were traded in each session of last week, worth over VND5 trillion (US$219.5 million). The figures were down 0.5… [Read full story]
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