Foreigners buy big on the HoSE

Foreigners bought 3.6 million units on Ho Chi Minh Stock Exchange (HoSE) today and sold 3.54 million, accounting for net buying value of VND19.6 billion ($946,860).

The move came amid  market concerns that foreign cash might be leaving Vietnam thanks to exchange rate policy instability.

The central bank’s move to devaluate the dong last week raised conflicting market analyst ideas about  possible foreign investors’ responses.

“It’s quite early to come to any conclusion about foreigners’ response on this exchange rate hike,” said Vietcombank Securities.

Foreigner’s return could not help the VN-Index from losing 4.76 points, or 0.92 per cent, to close at 513.11 points in today’s session.

Sacombank (STB) and Eximbank (EIB) gave up 0.65 per cent. Vietinbank (CTG) skidded 3.1 per cent, while Vietcombank (VCB) down 1.67 per cent

Bao Viet Holding (BVH) was off 0.53 per cent to VND94,500. Among the decliners, the blue-chip PetroVietnam Finance (PVF) hit the floor to VND26,000.

Liquidity even fell from already low level on investors’ macroeconomic concerns, with volume off nearly 13 per cent to 30 million shares, worth VND748.54 billion ($36.16 million). The most active share Saigon Securities Inc. (SSI) was traded at just 1.8 million units.

The southern bourse almost sunk into the red. As many as 170 stocks fell compared with 52 up, among them even the major stocks which were most purchased by foreigners like BVH, PVD, VCB, CTG and ITC.

On the Hanoi Stock Exchange (HNX), the HNX-Index significantly fell 1.16 points or 1.09 per cent to 105.49 points, accounted for its third consecutive losing sessions. Liquidity even strongly fell to 19.95 million units worth VND371.21 billion ($17.93 million), down 24 and 18 per cent respectively.

Some 172 stocks declined, 107 rose, 48 ended flat and 47 had no transaction on the northern bourse.

Foreigners were net sellers on the HNX again when buying 414,800 units of 21 stocks and selling 851,400 of 19 codes. They focused purchasing VNR, PVX, PVS, KLS and VCG while buying SHB, HBB, VNR, OCH and VND.