Foreigners Pump $120M into Vietnam Stocks in Q2

Foreign investors put back an additional US$120 million into Vietnam’s securities market in the second quarter of this year despite a period of heavy sell offs between January and March as a result from the global financial turmoil.

 

In the first quarter, foreigners sold a combined $700 million worth of securities, mainly in local bonds, out of a total holding of $8 billion.

 

The VN-Index, Vietnam’s key stock index, lost 10.4 per cent in the first three months, with the bottom at 235.50 on February 24. It gained back momentum, starting an upward trend, rising 55 per cent from April to June.

 

The number of foreigners seeking to trade local stocks is also rising. As of the end of June, the Securities Depository Center had granted securities trading codes to 13,036 foreign investors, including 1,031 institutions and 12,005 individuals.

 

Vietnam still posted a positive economic growth during the first half while the government persisted with its loosened monetary policies and boosted privatization of big state-owned enterprises. Listed companies also showed good business performance. All have interested foreign players, said Director of Analysis Division of Kim Eng Securities Co., King Yoong Cheah.

 

In the report released in late May, Kim Eng Securities Co. predicted the local stock market would become one of the fastest growing in the region as institutional investors are jumping onboard.

 

Foreigners are holding $1 billion worth of bonds, $2.7 billion in deposits and $4.5 billion in shares in Vietnam. (Economy & Urban Area, HCM City Law)