ETFs bullish about securities market

Tuesday, Mar 22, 2022 09:57

An investor monitoring share prices via an electric screen. — Photo

With more firms being added to portfolios in Q1, foreign Exchange Traded Funds (ETFs) are optimistic about Viet Nam’s securities market.

SSI Securities Corp. reported that two foreign ETFs had restructured their portfolios.

Notably, FTSE Vietnam Index has added DPM, VCG and VND to its portfolio and excluded no firms from the roster.

The Vietnam All-share Index has done likewise by including BCG, FRT, SHB, VCG and VND.

In February, net positive capital flows could be observed from most foreign ETFs, including VFMVN Diamond (VND400 billion), SSIAM VNFIN Lead (VND80 billion) and Global X MSCI Vietnam (VND75 billion).

However, there were still some ETFs bucking the trend. Notably, VFM VN30 withdrew up to VND744 billion from the market last month.

Experts believe that capital withdrawals could be attributed to the cautious sentiment towards the Federal Reserve’s contractionary monetary policy and the Russian-Ukraine conflict.

They also believed that foreign indirect investment in Viet Nam would fall in the short-term since foreign investors have been switching from risky assets to gold and US dollars to shield themselves from the geo-political tension.

A Thai fund has also announced that it will invest over VND2 trillion (US$87.5 million) in Vietnamese shares via ETFs, actively managed funds and direct purchase.

Petri Deryng, an investment manager at PYN Elite Fund, expressed optimism about Viet Nam’s securities market despite the Russian-Ukraine conflict.

He said the bright prospect for Vietnamese listed firms, the Government’s financial capability, and the ongoing trade surplus would help the Vietnamese economy stand firm amid export slowdown caused by an ailing global economy.

Domestic consumption is expected to bounce back soon thanks to Viet Nam’s young population, an expanding middle-class and fast-paced urbanisation.

High consumption, coupled with VAT cuts, would boost firms’ output and productivity, providing a fresh impetus to the economy in 2022.

According to the Ho Chi Minh Stock Exchange, Dragon Capital has purchased 1.25 million STB shares since early March to raise their ownership in Sacombank to 5.05 per cent.

The funds have also bought an additional 916,800 MBB shares to increase the number of MBB shares they hold to around 189.3 million, equivalent to 5 per cent of MBBank’s charter capital. — VNS

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