Vietnam Equity Funds Face $2.46B Outflow, August's Market Mixed
Vietnam's equity funds have experienced a significant downturn, with net withdrawals totalling nearly VND65 trillion ($2.46 billion) over the past two years. This amounts to 45% of the total net selling by foreign investors on the stock market. August saw the largest outflow in two years, with bond funds being the sole exception.
August's market dynamics revealed a mixed picture. While bond funds posted a net inflow of VND759 billion ($28.76 million), their third consecutive month of gains, equity funds faced a net outflow of VND7.6 trillion ($287.67 million). This was largely driven by withdrawals from 47 out of 74 equity funds, amounting to VND8.5 trillion ($321 million).
The most bought stock in August was MBB, a reversal from July's selling. However, this was not enough to offset the significant selling pressure from Thai investors, who sold VND643.7 billion and VND938.4 billion of DRs based on DCVFMVN30 and DCVFMVN Diamond, respectively. The heaviest pressure came from Fubon FTSE Vietnam ETF, K Vietnam Equity, and VEIL.
Despite the recent challenges, bond funds have shown resilience, attracting nearly VND6.5 trillion ($246.04 million) over the past 12 months, predominantly from domestic sources. However, the equity market faces substantial headwinds, with equity funds needing to address the significant outflows and restore investor confidence.
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