HCMCity (VNA) – Vietnam’s stock market will have to pin its hopes onforeign investors to continue recovering in September, said Bernard Lapointe –head of the research division at Rong Viet Securities Corporation.

In August, net selling by foreign investors exceededa combined 1.4 trillion VND (nearly 59.7 million USD) on the Ho Chi Minh StockExchange and the Hanoi Stock Exchange, a sharp drop from the 2.4 trillion VND(102.3 million USD) in July.

This helped ease selling pressure and createconditions for the benchmark VN-Index on the HCM Stock Exchange to regain 3.5percent last month.

Experts said money flow did not grow stronglybut was mainly circulated among groups of stocks. Therefore, it will bedifficult for the market to move further without a sudden change in money flow.

Although there haven’t been any signs theselling trend among foreign investors will halt, many large-cap stocks recordednet buying instead of net selling in August, especially consumer goods stockslike MSN (286 billion VND), VJC (237 billion VND) and HPG (206 billion VND).

Lapointe said the stock market will have to relyon foreign investors, though they are still prudent as inconsistent moves by USPresident Donald Trump have triggered worries about global economicinstability.

Some experts forecast the VN-Index will stand atabout 960 – 1,040 points in September as the US Federal Reserve is likely toraise interest rates this month.

Middle- and small-cap stocks will bring moreopportunities for investors compared to large-cap ones, they noted.

Regarding government bonds, the Rong VietSecurities Corporation said in a recent report that the issuance of G-bondsseems to have encountered obstacles, and it will be hard to reach this year’sissuance target of 200 trillion VND (8.5 billion USD).

By the end of August, 106 trillion VND (4.5billion USD) worth of G-bonds had been successfully issued, representing 53percent of the target. G-bonds with 10- and 15-year terms were more attractiveto investors thanks to relatively high dividends, while the issuance of otherbonds with longer terms was not so positive.

This fact is contrary to what happened in 2017,when sales of G-bonds with 20- and 30-year terms surpassed targets, the reportsaid.–VNA