Foreign investors are net sellers, a foreign fund gives the reason

Contrary to many experts' forecasts, the stock market continues to see net withdrawals ahead of the upgrade - Photo: QUANG DINH

Regarding the net selling of FPT shares, a large foreign fund on the stock market has spoken out about the reason for taking profit from this technology code.

Money still flows strongly into the US

In a recently published report, Yuanta Vietnam Securities reported that after the Fed announced its decision to keep interest rates unchanged, the US stock market almost went sideways, ending the continuous decline in previous weeks.

Notably, cash flow into ETF investment funds in the US has become active again, recording a net inflow of 81.3 billion USD in the week from March 17 to 21.

Funds investing in US stocks reversed to absorb a net of 63.3 billion USD, while cash flow into bond funds maintained a stable net inflow of 4.7 billion USD during the above period.

In the Asian stock market, foreign investors continued to withdraw strongly in Taiwan with 1.1 billion USD, down 71% compared to the net withdrawal amount last week, according to Yuanta Vietnam.

In contrast, the Korean market reversed to absorb nearly 1.7 billion USD, leading the net absorption in the region.

Particularly for the Southeast Asia region, Yuanta Vietnam said that the main net cash flow was in ETF funds investing in the Indonesian market (+7.9 million USD) and Malaysia (+7.5 million USD).

In contrast, ETF funds investing in Vietnam continued to see a net withdrawal of another 15.5 million USD, of which the Fubon FTSE fund continued to record a net withdrawal of 12.9 million USD.

If calculated from the beginning of the year until now, data shows that foreign investors have net sold more than 25,800 billion VND (more than 1 billion USD) on the Vietnamese stock market. Of which, FPT was net sold more than 6,600 billion VND, followed by VNM with more than 1,800 billion VND, TPB with 1,687 billion VND...

What did 'Shark' PYN Elite Fund warn after taking profits on FPT and CMG?

Net withdrawals from funds come from many different reasons. It is rare for an investment fund, after selling a stock, to share a negative view about that code or explain the real reason.

However, recently, PYN Elite (Finland) - a large foreign fund in the Vietnamese stock market - shared some notable information after taking profits on technology stocks such as FPT and CMG.

Holding technology stocks like FPT and CMG has outperformed by a clear margin in 2024, said Petri Deryng, portfolio manager of PYN Elite.

"However, an experienced investor will recognize the high price and can reduce the risk by taking profits in such positions," said the head of this foreign fund.

The performance of the stock market in 2025 will be influenced by a number of factors, he said. But think back to the tech bubble of 2000, when it was difficult to tell whether we were in the early stages of a market crash or just profit-taking.

"The bursting of the tech bubble in 2000 had a strong impact not only on US tech stocks but also on the Finnish stock market, where Nokia had a large weighting in the index, along with a large group of tech companies that listed during the tech boom and the advent of wireless technology," Petri Deryng recalled.

The impact of the bursting tech bubble will eventually spill over into other stock markets, the foreign fund expert warned. Excitement is part of the nature of the stock market.

He also said that when “inflated,” stock valuations can rise significantly faster than underlying earnings growth, and no one can accurately estimate how high valuations will rise before a correction is likely.

Returning to the story of technology stocks earlier this year, the "shock" of DeepSeek caused global investors to be shaken by the wave of technology stock sell-off in the US. This wave affected technology stocks in the Vietnamese market, including FPT, CMG...

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BINH KHANH

Source: https://tuoitre.vn/khoi-ngoai-miet-mai-ban-rong-mot-quy-ngoai-neu-ly-do-20250327200753457.htm