Foreign Investors Return to Heavy Net Selling of VND 3,100B, VN-Index Drops

Overview

Foreign investors returned to heavy net selling of VND 3,100 billion (approximately USD 124 million) on the day, reversing a record inflow earlier in the week. The selling focused on blue-chip stocks including Vingroup (VIC), Techcombank (TCB), VIB, MBB, and FPT, causing the VN-Index to drop nearly 2 points to 1,806. The selloff underscores persistent foreign outflow pressure despite periodic inflows.

Key Facts

• Foreign investors net sold VND 3,100 billion (USD 124 million) in a single session, the highest in two weeks.
• Gross selling reached nearly VND 4,800 billion, while buying was under VND 1,700 billion.
• VN-Index closed at 1,806 points, down nearly 2 points, ending a short recovery.
• VN30 index fell 3 points to 1,957.
• Market turnover reached VND 24,000 billion, up VND 8,000 billion from the previous session.
• VHM and FPT led matched orders with VND 976 billion and VND 774 billion, respectively.
• Despite the index decline, market breadth was positive: 170 gainers vs. 130 losers on HOSE.

What Happened

Foreign investors returned to heavy net selling on the day, with net outflows of VND 3,100 billion (USD 124 million), according to exchange data. The selling was concentrated in large-cap stocks such as Vingroup (VIC), Techcombank (TCB), VIB, MBB, and FPT. This reversed a record inflow of over VND 4,000 billion earlier in the week, which had raised hopes of a sustained reversal in foreign flows.

Tyler Nguyen Manh Dung, Senior Director of Strategic Market Research at HSC Securities, attributed the selling to the inherent nature of large-cap stocks being the primary targets for foreign capital due to their size, liquidity, and transparency. He noted that year-to-date, foreign outflows have been heaviest in banking, real estate, and technology sectors, which face headwinds from monetary policy, high interest rates, and AI-related issues.

Market Context

The selloff pushed the VN-Index down nearly 2 points to 1,806, breaking a short recovery streak. The VN30 index fell 3 points to 1,957. Market turnover surged to VND 24,000 billion, up VND 8,000 billion from the prior session. VIC closed at VND 192,000 (-1.03%) on HOSE, while TCB fell 0.94% to VND 31,450, VIB rose 1.23% to VND 16,400, and MBB gained 0.40% to VND 25,200. Despite the index decline, market breadth was positive with 170 gainers versus 130 losers, indicating broad-based buying in smaller stocks.

Strategic Significance

The persistent foreign selling, despite occasional large inflows, highlights structural outflows from Vietnamese equities, particularly in banking, real estate, and technology. The concentration of selling in blue chips suggests that foreign investors are reducing exposure to sectors sensitive to domestic interest rates and global tech dynamics. The ability of the market to maintain positive breadth despite the selloff may indicate domestic retail support, but the sustainability of the recovery remains uncertain if foreign outflows continue.

What to Watch

• Foreign flow data in the coming sessions to see if the selling persists or reverses.
• VN-Index’s ability to hold above the 1,800 level and test resistance near 1,830.
• Q2 earnings reports from VIC, TCB, and other heavily sold stocks for fundamental catalysts.
• SBV policy signals on interest rates and exchange rate management.
• Global market developments, especially US-Iran tensions and oil price movements.