H1 net foreign investment improves on 2008 record

Friday, Jul 07, 2017 09:00

Foreign investors posted a net buy value of VND9.2 trillion (US$408.9 million) in the first half of 2017, beating the record VND8 trillion made in the first seven months of 2008.  — Photo cafef.vn

That was a big improvement compared to the total foreign investors’ net sell value of VND6.76 trillion made in 2016 due to the volatility of global stock markets, which was caused by investors’ concerns over new US policies under a Trump administration and the exit of Britain from the European Union.

According to Rong Viet Securities Co (VDSC), foreign investors bought a net value of VND8.975 trillion on the HCM Stock Exchange (HSX), reversing from a net sell value of VND6 trillion made in the second half of 2016.

Of the 18 sectors that were listed by VDSC in its Wednesday market report, foreign investors posted net purchase value in four sectors.

Foreign investment on the HSX focused mainly on the industries of construction and building materials, food and beverages, and mining and resources with net buy values of VND1.67 trillion, VND4.79 trillion and VND1.28 trillion in those three sectors, respectively.

Leading sectors such as financial services, banking and energy industries were second choice for foreign investors as net foreign investment in those three key sectors ranged from VND236 billion to VND544 billion.

Top stocks receiving strong foreign investment included dairy producer Vinamilk (VNM), steelmaker Hoa Phat Group (HPG), FLC Faros Construction (ROS) and gas station operator Petrolimex (PLX).

On the other hand, retail, insurance, real estate and chemicals were the industries in which foreign investors posted net sell value.

Foreign investors offloaded most ownership in real estate companies with a total net sell value of VND1 trillion while VND79 billion was the figure for the insurance sector.

Foreign investors focused their net selling in PetroVietnam Drilling and Well Services (PVD), Dat Xanh Real Estate Service and Construction Co (DXG), and Vingroup (VIC).

On the Ha Noi Stock Exchange, net foreign investment flows in listed companies reached VND225 billion, a decrease of 76 per cent compared to the previous six months.

Foreign investors were most attracted to the industries of construction and building materials, food and beverages, financial services and real estate with net buy values reaching VND287 billion, VND64 billion and VND75 billion.

The most targeted stocks on the northern exchange included ceramics producer Viglacera (VGC), construction firm Tasco (HUT) and food producer Dabaco (DBC).

On the opposite side, banking, energy and insurance sectors saw strong withdrawal of foreign investment, with net sell values at VND192 billion, VND103 billion and VND36 billion.

Foreign net selling concentrated on stocks such as Sai Gon-Ha Noi Bank (SHB), PetroVietnam Technical Services (PVS) and Tien Phong Plastic Co (NTP). — VNS

 

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