Vietnam's stock liquidity surpasses Singapore's: Revealing which big money flows are entering the market

New data shows that the proportion of transaction value of domestic institutional investors has unexpectedly increased from 6-10% in the 2023-2024 period to 40-50% in the last four months.

Vietnam's stock liquidity ranks first in the ASEAN region, surpassing even Singapore - Photo: QUANG DINH

Who bought billions net in the stock market session?

This weekend's trading session (September 5), VN-Index recorded a sharp drop of nearly 30 points with liquidity increasing by 24% compared to the previous session, reaching VND54,531 billion.

In this volatile session, foreign investors continued their net selling trend with a total value of nearly 1,500 billion VND. In contrast, domestic organizations (including self-employed) recorded a net buying of 1,128 billion VND.

Of which, the securities company's self-trading block net bought 161 billion VND. Meanwhile, domestic individual investors also maintained net buying power of 124.8 billion VND.

The sharp increase in liquidity while foreign investors continue to maintain net selling shows that domestic cash flow continues to play a leading role, especially from organizations and individual investors.

Mr. Dong Thanh Tuan - expert at Mirae Asset Vietnam Securities - said that the stock market has entered a new growth cycle characterized by fluctuating sessions with amplitudes of up to nearly 100 points as "a new normal state ".

Data from Mirae Asset Vietnam also pointed out a notable point about cash flow, which is that the role of domestic institutional investors is becoming increasingly visible when the proportion of transaction value of this group has increased from 6-10% in the period 2023 - 2024 to 40-50% in the last four months.

"We believe that the strong participation of domestic investors is the main driving force that helped the average liquidity per session increase to VND46,600 billion in August," said Mr. Tuan.

Another highlight of August came from the net selling of more than VND 42,000 billion by foreign investors, with the focus revolving around a series of strong divestments at VIC (-VND 12,600 billion),FPT (-VND 4,900 billion) and HPG (-VND 4,800 billion).

Medium-term outlook remains positive despite deep correction

Regarding the medium-term outlook, most securities companies still have positive assessments, with growth potential towards the 1,800 - 2,000 point range.

"But now the market has largely reflected positive factors such as the possibility of an upgrade from FTSE Russell and the Fed's interest rate cut, making the market gradually more vulnerable to profit-taking activities," said Mr. Tuan.

Therefore, Mirae Asset Vietnam's analysis team maintains a certain caution with the fluctuations expected to continue in September, with the base scenario being that the VN-Index finds support at 1,650 points before continuing its upward momentum.

Even less optimistic scenario would be the medium-term support at 1,550 points, as the market continues to look for new growth drivers in the face of external volatility.

Vietnam is currently being considered for upgrading by FTSE Russell, one of the three leading index providers in the world including MSCI, FTSE Russell and S&P Dow Jones Indices. This creates a reference base for international investors.

Previously, HSBC's global investment research department also positively assessed the possibility that the Vietnamese stock market would be considered by FTSE to be upgraded from a frontier market to an emerging market in the annual index review on October 7.

According to HSBC's most optimistic scenario, FTSE's upgrade could attract a maximum of 10.4 billion USD in foreign capital into the Vietnamese stock market.

However, HSBC notes that actual capital flows will be modest and distributed in stages, as FTSE usually gives about six months' notice when changing the classification of a market.

In particular, HSBC believes that Vietnam has had a strong and outstanding growth, with an increase of 37% in just the past 6 months. Compared to the upgraded markets, Vietnam's performance is very impressive.

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BINH KHANH

Source: https://tuoitre.vn/thanh-khoan-chung-khoan-viet-vuot-singapore-lo-dien-dong-tien-lon-nao-nhap-cuoc-20250907103143489.htm