Vietnam's August Investment Landscape: Equity Outflows, Bond Gains, and MBB's Rise
August saw a significant shift in Vietnam's investment landscape. While equity funds faced their largest outflow in two years, bond funds continued their winning streak. Meanwhile, a major stock caught the eye of investors.
MBB emerged as the most sought-after stock by funds in August, with PYN Elite increasing its stake to 11.8%. Despite this, equity funds as a whole struggled, with net withdrawals of nearly VND65 trillion ($2.46 billion) over the past two years. This amounts to 45% of foreign investors' total net selling on the stock market.
The pressure on equity funds was intense, with Fubon FTSE Vietnam ETF, K Vietnam Equity, and VEIL bearing the brunt. Thai investors also contributed to the outflow, selling VND643.7 billion and VND938.4 billion of DRs based on DCVFMVN30 and DCVFMVN Diamond, respectively. TCB and ACB continued to be sold for the third month in a row, with TCB leading in net sales. In total, 47 out of 74 equity funds faced withdrawals worth VND8.5 trillion ($321 million), resulting in a net outflow of VND7.6 trillion ($287.67 million).
Contrasting this, bond funds posted a net inflow of VND759 billion ($28.76 million) in August, marking the third straight month of gains. Over the past 12 months, bond funds attracted nearly VND6.5 trillion ($246.04 million), with most of the money coming from domestic sources.
August's market dynamics in Vietnam highlight the contrasting fortunes of equity and bond funds. While equity funds grapple with significant outflows, bond funds maintain their positive momentum. Meanwhile, MBB's popularity among funds signals a shift in investment strategies.
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