boiman
27-10-2008, 06:29 PM
Securities companies all have advised domestic
investors not to worry too much about the net sales of foreign
investors in the last few trading sessions.
Foreigners’ transactions September 3 - October 22
Shares
|
|
HOSE
|
HASTC
|
Total
Trading volume
|
Purchase
|
74,100,070
|
18,048,800
|
92,148,870
Sale
|
98,109,860
|
20,758,200
|
118,868,060
Net sale
|
24,009,790
|
2,709,400
|
26,719,190
Trading value
(VND1,000)
|
Purchase
|
3,981,11,531
|
768,010,620
|
4,749,122,151
Sale
|
4,644,236,363
|
716,590,770
|
5,360,827,133
Net sale
|
663,124,832
|
51,419,850
|
611,704,982
Statistics show that foreigners’ bond net trading
volume was 126,833,720 bonds during that time, including 6,000,000
bonds on the HCM City Stock Exchange (HOSE) and 120,833,730 on the
Hanoi Securities Trading Centre (HASTC). Foreigners’ bond net trading
value was VND11,696,227,744,000.
Foreign investors, like domestic ones, always tend to sell stocks to keep cash when there are problems in the world’s market.
The question “Will foreign investors withdraw money
from the stock market?” is being answered by another question: “What
will they do with the money?”
In fact, foreign investors do not have many reasons to
withdraw money from stocks, as Vietnam is still considered a good
market in Asia with the P/E index last week equal to that in the
Singaporean and Malaysian markets. Meanwhile, Vietnam has the
advantages of political stability and high economic growth, the highest
rate in the region.
Tran Dinh Phong, Investment Director of VNDS
Securities Company, said that investors should not be too worried about
the big sales of foreign investors. If foreign investors sold all the
stocks they are holding, estimated at 20% of the total market value,
the shares would be absorbed by domestic investors. Phong said that
wise investors now can begin purchasing good stocks. When the net sale
movement weakens, foreign investors tend to purchase shares in big
quantities, which helps stock prices recover.
TDH share is an example. Foreign investors
continuously sold TDH previously, leading the share item to drop
sharply to VND28,000/share. However, when foreigners stopped selling
last Wednesday, and the information about internal shareholders
registering to buy shares was announced, TDH bounced back.
Experts have every reason to believe that the capital
withdrawal ratio will just account for a small portion of the total
portfolio investment in Vietnam. Some companies said that after some
senior investment funds in Vietnam sold shares of companies, newer
funds purchased the shares.
Nguyen Hoang Anh, Deputy Chairman of National
Assembly’s Economics Committee: Viewpoint that foreign investors are
withdrawing capital from the stock market unconvincing
As far as I know foreign investors injected 50% of
their money in government bonds. In all cases, I think, foreign
investors will still hold government bonds. They will not be unwise
enough to sell bonds, the safest assets in the context of the global
financial crisis.
Many people are worried that foreign investors will
sell out shares and fund certificates to escape from Vietnam. I think
that this, if it happened, would not be bad for the stock market. The
market, after the hot development period from mid 2006 to early 2008,
has fallen down sharply to a level which could not be lower. If some
foreign investors sell stocks, others will purchase.
If investors withdraw capital, this would not be
catastrophic for the national economy since the capital the stock
market can provide for the national economy remains modest. In 2009,
the total investment capital is expected to be VND725tril, or 40% of
GDP, much more than the capital the stock market can provide.
Nguyen Viet Anh, General Director of
Vietcombank Investment Fund Management Company (VCBF): Foreign
investors not withdrawing money because of Vietnam’s economy
The net sales by foreign investors are quite
understandable. In the context of the global financial crisis,
investors automatically think of restructuring their investment
portfolios, withdrawing money from high-risks investments to inject
money in safer channels. Maybe some foreign investors, both
institutional and individual, are facing difficulties in their main
markets, and they have to take back money to pay due debts. However,
foreign investors are not withdrawing capital collectively because they
do not value Vietnam’s economy.
This sale should be seen as the action of
restructuring investment portfolios of the investors who are suffering
from the global financial crisis. Other investors do not have the
intention of withdrawing capital from Vietnam; but they also still have
to think of quitting high-risk investments, and looking for safe
investments with low costs.
All the investment funds now being managed by VCBF aim
at medium- and long-term strategies. Therefore, temporary changes of
the stock market do not affect our strategy and investment mode. VCBF
is still injecting money in good companies. It plans to disburse some
$100mil in the upcoming 15 months.
investors not to worry too much about the net sales of foreign
investors in the last few trading sessions.
Foreigners’ transactions September 3 - October 22
Shares
|
|
HOSE
|
HASTC
|
Total
Trading volume
|
Purchase
|
74,100,070
|
18,048,800
|
92,148,870
Sale
|
98,109,860
|
20,758,200
|
118,868,060
Net sale
|
24,009,790
|
2,709,400
|
26,719,190
Trading value
(VND1,000)
|
Purchase
|
3,981,11,531
|
768,010,620
|
4,749,122,151
Sale
|
4,644,236,363
|
716,590,770
|
5,360,827,133
Net sale
|
663,124,832
|
51,419,850
|
611,704,982
Statistics show that foreigners’ bond net trading
volume was 126,833,720 bonds during that time, including 6,000,000
bonds on the HCM City Stock Exchange (HOSE) and 120,833,730 on the
Hanoi Securities Trading Centre (HASTC). Foreigners’ bond net trading
value was VND11,696,227,744,000.
Foreign investors, like domestic ones, always tend to sell stocks to keep cash when there are problems in the world’s market.
The question “Will foreign investors withdraw money
from the stock market?” is being answered by another question: “What
will they do with the money?”
In fact, foreign investors do not have many reasons to
withdraw money from stocks, as Vietnam is still considered a good
market in Asia with the P/E index last week equal to that in the
Singaporean and Malaysian markets. Meanwhile, Vietnam has the
advantages of political stability and high economic growth, the highest
rate in the region.
Tran Dinh Phong, Investment Director of VNDS
Securities Company, said that investors should not be too worried about
the big sales of foreign investors. If foreign investors sold all the
stocks they are holding, estimated at 20% of the total market value,
the shares would be absorbed by domestic investors. Phong said that
wise investors now can begin purchasing good stocks. When the net sale
movement weakens, foreign investors tend to purchase shares in big
quantities, which helps stock prices recover.
TDH share is an example. Foreign investors
continuously sold TDH previously, leading the share item to drop
sharply to VND28,000/share. However, when foreigners stopped selling
last Wednesday, and the information about internal shareholders
registering to buy shares was announced, TDH bounced back.
Experts have every reason to believe that the capital
withdrawal ratio will just account for a small portion of the total
portfolio investment in Vietnam. Some companies said that after some
senior investment funds in Vietnam sold shares of companies, newer
funds purchased the shares.
Nguyen Hoang Anh, Deputy Chairman of National
Assembly’s Economics Committee: Viewpoint that foreign investors are
withdrawing capital from the stock market unconvincing
As far as I know foreign investors injected 50% of
their money in government bonds. In all cases, I think, foreign
investors will still hold government bonds. They will not be unwise
enough to sell bonds, the safest assets in the context of the global
financial crisis.
Many people are worried that foreign investors will
sell out shares and fund certificates to escape from Vietnam. I think
that this, if it happened, would not be bad for the stock market. The
market, after the hot development period from mid 2006 to early 2008,
has fallen down sharply to a level which could not be lower. If some
foreign investors sell stocks, others will purchase.
If investors withdraw capital, this would not be
catastrophic for the national economy since the capital the stock
market can provide for the national economy remains modest. In 2009,
the total investment capital is expected to be VND725tril, or 40% of
GDP, much more than the capital the stock market can provide.
Nguyen Viet Anh, General Director of
Vietcombank Investment Fund Management Company (VCBF): Foreign
investors not withdrawing money because of Vietnam’s economy
The net sales by foreign investors are quite
understandable. In the context of the global financial crisis,
investors automatically think of restructuring their investment
portfolios, withdrawing money from high-risks investments to inject
money in safer channels. Maybe some foreign investors, both
institutional and individual, are facing difficulties in their main
markets, and they have to take back money to pay due debts. However,
foreign investors are not withdrawing capital collectively because they
do not value Vietnam’s economy.
This sale should be seen as the action of
restructuring investment portfolios of the investors who are suffering
from the global financial crisis. Other investors do not have the
intention of withdrawing capital from Vietnam; but they also still have
to think of quitting high-risk investments, and looking for safe
investments with low costs.
All the investment funds now being managed by VCBF aim
at medium- and long-term strategies. Therefore, temporary changes of
the stock market do not affect our strategy and investment mode. VCBF
is still injecting money in good companies. It plans to disburse some
$100mil in the upcoming 15 months.