Investors throw Vietnam shares for Tesla, crypto | Property

Foreign investors are downloading shares, even though the VN Index has gained 33 percent to make it the best performer in Southeast Asia.

Foreign investors have been trading shares in Vietnam all year, despite a historic rise. Tesla Inc. and it seems to be part of the reason for the competition of well-known retail stocks like cryptocurrency.

Korean retail investors – which accounted for 16% of net foreign income between 2017 and 2019 – are among those sold and unloaded the net worth of $ 166 million worth of shares this year, according to Korean Securities Deposits. Risk-hungry shifts have shifted from emerging markets to the U.S., where high-yielding speculative assets are growing, analysts say.

“Bitcoin and U.S. equities, especially technology growth stocks, have undergone major changes,” said Lee Soyeon, a market strategist at Korea Investment & Securities Co. “So they were more attractive to investors than Vietnam. Stock transactions are a bit complicated and profits have been delayed.”

Foreign investors have had outflows except for one month this year, although the benchmark VN Index gained 33%, despite having the highest yield in Southeast Asia. In total, they sold a record $ 2.7 billion worth of shares in 2021, according to data collected by Bloomberg.

“A lot of foreign sales are just making a profit,” said Stephen McKeever, head of the institutional client division at Ho Chi Minh City Securities Corp. “The market has been very good and some investors have made money,” the Korean retail investor said. They have focused on US technology stocks like Tesla, he added.

However, Vietnamese observers such as Jessica Tea of ​​BNP Paribas Asset Management and Quynh Cao of SSI Securities Corp. see long-term positive bases in the country’s stock market and suspect that foreign investors will return. Demographics, Vietnam’s place in the Asian production chain, and attractive valuations benefit equity investors, they said.

“We believe that the net foreign sales we have seen over the last two years do not necessarily reflect the sentiment of foreign investors in Vietnam, it remains very positive,” McKeever told Ho Chi Minh City Securities. “That’s what we call the paradox of feeling.”