Foreign investors withdraw hundreds of millions of dollars from local stock exchange

April 20, 2020 | 17:44

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Driven by the prolonged impact of the coronavirus outbreak, foreign investors have withdrawn more than VND12 trillion ($521.74 million) from the local stock exchange since early 2020.

foreign investors withdraw hundreds of millions of dollars from local stock exchange

Overseas investors have revoked VND12.2 trillion ($530.43 million) or 2 per cent of their stock value from the Vietnamese stock exchange

After dozens of consecutive net selling sessions, overseas investors have revoked VND12.2 trillion ($530.43 million) or 2 per cent of their stock value in the market since early this year. The latest five sessions saw more than VND1 trillion ($43.48 million) withdrawn from the securities market.

Nevertheless, in comparison with regional countries, the number is relatively modest as the year-to-date figure in Thailand is nearly $3.6 billion, as much as seven times Vietnam’s. In Malaysia, the number is six times as much as in the local market.

According to Yuanta Vietnam, about 76 per cent of the sum stems from mutual funds, followed by exchange-traded funds (ETFs) with a rate of 11.5 per cent. The rest are foreign investment organisations and individuals with 9.1 and 3.2 per cent, respectively.

Along with Vietnam, Asian stock markets have been experiencing great burdens. Japan was hit the worst, with the total funds withdrawn of nearly $50 billion, while the numbers at Taiwan and South Korea are $17.9 billion and $16 billion.

Securities experts estimated that foreign investors in the market have suffered losses of 29 per cent from selling stocks during the health crisis. However, KB Securities Vietnam in a daily report reminds that mutual funds are notoriously flighty in their race to catch up with market trends. Thanks to that, the stock exchange will be warmer towards late June, when the epidemic is forecast to be brought under control.

By Van Anh

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