Making news

H1 net foreign investment improves on 2008 record

Hanoi, July 8 (VNA) - Foreign investors posted a net buy value of 9.2 trillion VND (408.9 million USD) in the first half of 2017, beating the record 8 trillion VND made in the first seven months of 2008. 

That was a big improvement compared to the total foreign investors’ net sell value of 6.76 trillion VND 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 8.975 trillion VND on the HCM Stock Exchange (HSX), reversing from a net sell value of 6 trillion VND 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 1.67 trillion VND, 4.79 trillion VND and 1.28 trillion VND 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 236 billion VND to 544 billion VND. 

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 1 trillion VND while 79 billion VND 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 Hanoi Stock Exchange, net foreign investment flows in listed companies reached 225 billion VND, a decrease of 76 percent 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 287 billion VND, 64 billion VND and 75 billion VND. 

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 192 billion VND, 103 billion VND and 36 billion VND. 

Foreign net selling concentrated on stocks such as Saigon-Hanoi Bank (SHB), PetroVietnam Technical Services (PVS) and Tien Phong Plastic Co (NTP).