VNStockNews.com - In 2010, foreign investors strongly boosted the purchase of stocks on Vietnam's stock market, bringing the total volume of purchased shares up to 838 million stocks, the ever highest figure. Net purchase value of 202 million shares is estimated to have reached 12.334 trillion dong, averaged at 1.121 trillion dong/month.
The total purchase value reached 37.396 trillion dong, equivalent to 2009 and 66 percent compared with 2007, but the volume of shares bought by foreigners was equivalent to 110 percent respectively in 2009 and 208 percent in 2007.
In addition, the average purchase price per share in 2010 was 44,000 dong per share compared to 48,000 dong per share in 2009 and 140,000 dong per share in 2007.
Thus, foreigners have bought shares at a cheaper price compared to previous years. More and cheaper price of shares in Vietnam was a driving force to help foreigners buy up stronger whenever the stock market fell. Time when foreigners were net buyers most was from April onwards, purchased strongly and stably when the VN Index fluctuated at 440-460 points.
Although Vietnam's stock market was not attractive very much to this capital flow as Thailand, Indonesia, Singapore, in 2010 it also attracted a significant amount of the foreign capital.
Thus, clearly, foreigners had difficulty in finding the return on the Vietnamese stock market in the previous years. However, in 2010, foreigners strongly boosted net of stocks early this year when the share price was at the high level and also the other strong net buying at the end of the year, when stock prices hit low, which suggested that foreigners are averaging the prices to reduce the average price costs.
Another notable point is the foreign trade has enormous impacts to the evolution of the VN Index, helping lead the market. Price averaging strategy and holding bluechips stocks have brought significant achievements that foreign investors did not fall in mass loss in 2010.
Therefore, next time, NAV price support activities by the end of the Chinese Lunar Year will still take place but not really strong, foreign sales will increase when the market rallies to realise profits and net purchase at prices' reduction. This move will continue to support the VN Index to keep the stock market steady rallies.
