Vietnam Stock Market - Up or Down, Foreign Investors Decide

The May 29 trading session is one of the most boring sessions after Tet holidays. The VN-Index was down 8.09 points to 537.30, the lowest in the latest 14 sessions.

 

At present, the average P/E ratio (price on earnings) drops drastically to 22.33, compared to the top 28 previously.

 

The amended EPS (earnings per share) announced by the Ho Chi Minh City Securities Trading Centre (HSTC) on its daily market bulletin on May 29 showed the current P/E ratio as follows:

VNM and REE always receive the most concerns of foreign investors although the market is up or down. From early 2006 to date, foreign investors paid VND162 billion (US$10.15 million) to buy nearly 2.5 million REE stocks, trebling the selling volume of 820,000 stocks evaluated VND46.5 billion. The expenditure of foreign investors on VNM is even much higher to VND590 billion (US$36.88 million) for nearly 8 million stocks. However, the selling volume of VNM stocks is equal to nearly 20 per cent of the buying volume, VND108 billion (US$6.75 million) for 1.45 million shares.

On the May 30 trading session, the VN-Index dropped to 520 points. However, the market showed positive signals as the buying was on the rise. Foreign investors paid out VND28 billion to buy 346,500 shares of 17 codes on May 30, accounting for 28 per cent of the total volume and 30 per cent of order-matching volume.

According to analysts, foreign investors normally buy in at falling sessions and focus on top stocks like VNM, REE, SAM, GMD, DHA, TMS, SSC, GIL, SAV, NKD and KDC.

 

The soar in purchasing volume of foreign investors is psychologically good to domestic investors. Thus, the order-matching rate increased 66 per cent in volume and 84 per cent in value on May 30.

The strong demand for five major stocks of VNM, REE, SAM, GMD and KDC also had positive influences on AGF, DHA, NKD, SSC, TMS, GIL, SAV, BBC and TYA. These stocks together with MHC, CAN and HAS were 17 price-rising shares on May 31 trading session. These mainstay shares play decisive roles in the rise of the VN-Index to 538.91 points, up 12.9 points, and put to an end a month of ups and downs. Foreign investors bought more than 375,000 shares valued at VND33 billion on the day.

 

According to experts, the better experience and knowledge of stock exchange will help investors avoid buying or selling rushes as they took place from February to April.