Domestic ETFs continued to net inflow more than VND218 billion, mainly contributed by Kim Growth VN30 ETF with net inflow value reaching more than VND131 billion. Similarly, VFM VNDiamond fund and SSIAM VNFIN LEAD ETF fund net inflow more than VND51 billion and VND15 billion, respectively.
Statistics for the week from July 22 to July 26, 2024, ETFs investing in Vietnamese stocks turned to a slight net inflow of more than VND 65 billion after 11 consecutive weeks of net cash withdrawals with a total cumulative value of nearly VND 6.7 trillion. The net inflow occurred mainly in the Kim Growth VN30 ETF fund.
In July 2024, the cash flow through ETF funds recorded a net withdrawal of more than VND 2.4 trillion. Thus, the cumulative net withdrawal value from the beginning of 2024 in ETF funds reached more than VND 17.7 trillion, 11.1 times higher than the total net withdrawal value of more than VND 1.5 trillion in 2023 and equivalent to 29.7% of net selling value by foreign investors since the beginning of 2024.
The total net asset value of ETFs (including foreign and domestic ETFs) reached VND65.9 trillion in the week from July 22 to July 26, down -1.11% compared to the previous week. It should be noted that this is the total net asset value calculated only for the Vietnamese market.
Last week alone, foreign ETFs continued to see a net withdrawal of more than VND153 billion, marking the 11th consecutive week of negative cash flow with a cumulative total value of nearly VND4 trillion. The main contribution came from the Fubon FTSE Vietnam ETF fund, which saw a net withdrawal of VND115 billion. Similarly, the KIM ACE Vietnam VN30 ETF fund also saw a net withdrawal of nearly VND44 billion.
The net withdrawal value of the iShares MSCI Frontier and Select ETF fund reached more than VND246 billion in the week of July 22 - July 26. In the Vietnamese market alone, this fund recorded a net withdrawal of nearly VND300 million. The latest portfolio update on July 26 showed that this fund had sold all FTS and KDC shares. Thus, the fund still holds VND161,000 shares, VND2.5 billion, holds 58,000 shares of VCG, VND1.1 billion, DBD with 26,700 shares worth VND1.1 billion, and HDG with 6,500 shares, VND188 million.
Domestic ETFs continued to net inflow more than VND218 billion, mainly contributed by Kim Growth VN30 ETF with net inflow value reaching more than VND131 billion. Similarly, VFM VNDiamond fund and SSIAM VNFIN LEAD ETF fund net inflow more than VND51 billion and VND15 billion, respectively.
On July 29, 2024, Fubon FTSE Vietnam ETF continued to be net withdrawn by nearly 76 billion VND. This fund continued to sell shares with an estimated value of more than 80 billion VND. The top net sellers were HPG with 311 thousand shares, net selling value of 8.5 billion VND, VHM with 181 thousand shares, net selling value of 6.8 billion VND, VIC with 170 thousand shares, -7.1 billion VND), SSI with 163 thousand shares, -5.2 billion VND, and SHB with 151 thousand shares, -1.6 billion VND.
In addition, VFM VNDiamond ETF fund also had a net withdrawal of nearly 23 billion VND while VFM VN30 ETF fund had no change in cash flow.
Not only did the ETF group record positive sentiment, foreign investors also turned to net buying last week. Foreign investors net bought VND420.39 billion, while in matching transactions alone, they net sold VND452.9 billion.
Foreign net buying orders mainly include Food and Beverage, Oil and Gas. Foreign net buying orders include the following codes: VNM, MSN, BCM, VCB, BID, FPT, FRT, KBC, POW, STB. Foreign net selling orders include the Chemicals group. Foreign net selling orders include the following codes: DGC, SSI, MWG, VHM, VPB, TCH, VRE, OCB, DIG.
The moves by foreign investors in particular and ETFs in general show that the Vietnamese Government’s efforts to upgrade the rating have initially recorded positive results. Most recently, the Ministry of Finance and the State Securities Commission have announced draft amendments to four Circulars on securities.
This draft removes two important bottlenecks including the Prefunding regulation and the roadmap for detailed information disclosure in English. If in the past, foreign institutional investors who wanted to buy stocks were required to have money, which was a major limitation, now it is not necessary to have 100% of money, giving them the opportunity to continuously rotate money. From there, promote disbursement to buy stocks.
Representatives of the Securities Commission also expect positive results in the review in September.
Ms. Le Thi Le Hang, Strategy Director of SSI Securities Company, predicts that if everything goes smoothly, Vietnam will be upgraded around September 2025 and will be included in the new basket at the earliest in March 2026. Foreign investors will start net buying for a long time before there is official information about the upgrade. Therefore, the market will be bustling in the second half of 2025, the Vn-Index is expected to absorb back 2 billion USD that was sold in the first half of 2024.
Source: VnEconomy
