SSI RESEARCH: "THE ETF CAPITAL LINE CAN RETURN TO THE VIETNAMESE MARKET IN THE END OF 2019, AND BEGINNING OF 2020"

26/11/2019, 14:18 PM

According to SSI Research, in the past, strong increases in Vietnam's stock market are supported by funding from ETF funds. This correlation is more faint in June and July 2019, when the ETF funds record inflow but Vn-index did not have much prosperity. At that time, the trend of capital flows across the globe is not really positive with stocks. Trade war tensions back in August that caused the investors to immediately redirect the defensive.

For the past 2 months, capital inflows into ETFs in and out but inflow is still higher. However, the foreign investors sold a large net on all 3 stock exchanges (1,583 billion in Oct and 950 billion in Nov). This action is restructured by proactive investment funds, thereby creating pressure on the market.

SSI Research reviews with the new performance of global capital flows in recent times and with the assumption that there are no unexpected fluctuations such as the collapse of U.S – China trade negotiations, foreign capital flows in which ETF capital flows are hoping to be positive, thereby raising the support for the index during the end of 2019 and the beginning of 2020.

(CafeF)

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