Foreign Investors Consistently Sell More than They Buy, Resulting in a Drop in VN-Index by End of May
HÀ NỘI - Vietnam's stock market closed in the red on May 30, with the VN-Index falling 0.69% to 1,332.6 points. The HNX-Index also dipped by 0.49%, closing at 223.22.
Foreign investors were the main culprits behind the market's downward trajectory, extending their net selling streak to six sessions. They offloaded nearly VNĐ1.1 trillion worth of stocks on the Hochiminh Stock Exchange. HPG faced the most pressure, with net sales of VNĐ188 billion, followed by MWG and Sacombank, both with over VNĐ100 billion in net outflows.
The market experienced strong fluctuations throughout the day. VN-Index opened green but quickly reversed course as selling intensified, particularly in the afternoon session. Liquidity improved slightly compared to the previous day, but capital flow remained highly selective, with a clear sector rotation.
Mobile World Investment Corporation (MWG) dropped by 3.42%, erasing 0.76 points from the VN-Index. VietinBank (CTG) and BIDV (BID) each shaved nearly 0.8 points from the benchmark. Textile and seafood stocks also declined sharply, with HTG down 2.89%, TCM falling 2.75%, VHC retreating 3.8%, and FMC dropping 1.8%. Meanwhile, seaport and maritime logistics group continued to correct, with HAH down 2.99%, PHP down 2.6%, and VSC falling 2.5%.
Several stocks in the steel and securities sectors helped narrow the market's losses. Hòa Phát Group (HPG) gained 0.8%, NKG rose 1.5%, and VGS advanced 1.15%. In the securities sector, EVS hit the ceiling price, CTS added 4.13%, and APG gained 2.54%, contributing positively to market sentiment.
Investors monitor the stock market. - Photo baotintuc.vn
Despite brief periods of optimism, such as net buying in early May, foreign investors later resumed net selling, particularly at the end of May, which weighed on market sentiment and contributed to the VN-Index decline. However, recent regulatory updates, such as Decree 69/2025, have expanded foreign participation in Vietnamese financial institutions, potentially increasing long-term confidence and foreign investment, especially in banks involved in strategic restructurings. Furthermore, expectations that Vietnam may be upgraded to emerging market status by FTSE Russell in September 2025 could attract substantial passive investment, which would likely boost the VN-Index and counterbalance previous outflows.
- The repeated net selling by foreign investors, specifically in the latter part of May, negatively impacted market sentiment and contributed to the decline of the VN-Index.
- Despite the market losses, some stocks in the steel and securities sectors, such as Hoa Phat Group (HPG), NKG, VGS, EVS, CTS, and APG, helped to mitigate the losses.
- The recent regulatory updates, like Decree 69/2025, increasing foreign participation in Vietnamese financial institutions, and the potential upgrade of Vietnam to emerging market status by FTSE Russell in September 2025, could boost long-term confidence and foreign investment in banks and the stock market.
