Vietnam Stock Investor Confidence Unstable in 7 Months

The confidence of Vietnamese securities investors remained unstable from the beginning of this year, reflecting unexpected fluctuations of the VN-Index, the Woori CBV Securities said.

 

In the Vietnam Investor Confidence Index® which is built to measure the confidence of both local and foreign investors in Vietnam’s stock market, CBV said the index has gone around medium level at 100 and sometimes fallen to negative level at 80 in two recent months when the VN-Index moved sideway around 500.

 

The index rose strongly to 120 when the benchmark surged from 471 to 549 since mid-April through early May, indicating good optimism of local investors.

 

Woori CBV said though receiving an active participation of foreign investors, Vietnam’s stock market has been still affected by local sentiment; and their caution amid weak cash flows has resulted in a sideway-moving trend recently.

 

Meanwhile, the index on confidence of foreign investors has maintained above 100, even to 140 in some straight sessions, showing their high optimism. They continued buying, with a net value of VND7.6 trillion in the year to date.

 

“Foreign confidence in the market prospect has helped the market avoid sharp declines amid lack of supporting news from global and local economies”, Woori CBV commented.

 

The Vietnam Investor Confidence Index® is built on quantative method, with 50% based on buying and selling trend of investors, and 50% on the market P/E in comparison with ten-year government bond yields. (Vneconomy, Securities Investment)