Vietnam Equity Funds See $287.67M Net Outflow in August
Vietnam's equity funds experienced a significant net outflow of nearly VND7.6 trillion ($287.67 million) in August, marking the largest withdrawal in two years. This trend, however, contrasts with bond funds which saw a net inflow of VND759 billion ($28.76 million) for the third consecutive month.
The equity funds' exodus was driven by 47 out of 74 funds facing withdrawals worth VND8.5 trillion ($321 million), while only 27 funds experienced net inflows of VND793 billion ($30.02 million). Notably, large-cap stocks such as banks (ACB, VCB, TCB) and retailers (MWG) were targeted by Thai investors for selling, with Thai investors selling VND643.7 billion and VND938.4 billion of DRs based on DCVFMVN30 and DCVFMVN Diamond respectively, accounting for a majority of the funds' outflows.
Despite the overall negative sentiment, there were positive signs among fund managers. 21 out of 34 funds reduced their cash ratios in August, indicating a more optimistic outlook. Meanwhile, bond funds continued their winning streak, with large funds like MBAM leading the trend. MBB was the most bought stock by funds in August, with demand coming from PYN Elite and several ETFs.
The August equity funds' outflow, equivalent to nearly 45% of foreign investors' total net selling on the stock market over the past two years, signals a challenging period for Vietnam's equity market. However, the bond funds' continued inflows and the positive sentiment among fund managers suggest a potential shift in investor focus, with bond funds emerging as a safer haven.
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