Foreign cash flows strongly buy bank stocks

The trading session on April 28 ended with a cautious sentiment covering the market before the April 30-May 1 holiday. The VN-Index fell slightly by 2.43 points to 1,226.8 points, amid weak liquidity, with the total matched value on HoSE reaching only about VND12,281 billion. However, a bright spot was that shares of Military Bank (MBB) were strongly net bought by foreign investors, leading the entire market with a value of up to VND117 billion.

Although foreign investors only sold a slight net of VND5 billion in the whole market, net buying activities in some key stocks were still active. Specifically, in addition to MBB, stocks such as BVH, SAB, VIC and HDB also recorded good foreign demand with net buying value ranging from VND54-81 billion. On the contrary, net selling pressure focused mainly on VHM (-VND117 billion) and FPT (-VND105 billion).

MBB shares were the most net bought in the whole market with a value of 117 billion VND.

The strong net buying of MBB shares in the context of a gloomy trading market has attracted great attention from investors. According to experts, foreign demand for MBB comes from many internal supporting factors.

Mr. Han Huu Hau, an analyst at VPS Securities Company, commented: "MBB has a great advantage in terms of a solid financial foundation, stable credit growth rate and profitability among the highest in the banking sector. In addition, MBB's P/B valuation is currently attractive compared to the industry average, creating motivation for foreign investors to increase their proportion. In particular, the stability in asset quality and the bank's retail expansion strategy make MBB a priority choice in the current period."

According to Mr. Hau, the fact that foreign investors are strongly buying MBB also shows long-term expectations for the growth potential of this bank's shares, especially in the context that many banks are entering a cycle of asset restructuring to adapt to Basel II and Basel III requirements.

In addition to the highlight from MBB, the session on April 28 also recorded a clear differentiation between stock groups. In the VN30 basket, although VHM and FPT weakened sharply, other codes such as VIC, SAB, MSN, MWG showed positive improvements in the afternoon session, helping to narrow the overall decline of the index.

Market breadth on HoSE at the end of the session tilted slightly to the downside with 235 stocks increasing/262 stocks decreasing. However, the positive point was the number of stocks increasing strongly by 1% or more and liquidity improved well in the afternoon session. Small and medium-cap stocks such as HAG, HAP, DRH, TDH hit the ceiling, along with the breakthrough in liquidity of many stocks in the securities and real estate groups such as SSI, VCI, HCM, VRE.

Although overall liquidity remains low compared to the average of the last 10 sessions, the more concentrated cash flow and positive price push are signs that investor sentiment remains cautiously optimistic ahead of the long holiday.

Another notable development in today's session was that foreign investors returned to strong net buying in the afternoon session, with net buying value on HoSE reaching VND349.8 billion, double that of the morning session. Besides MBB, stocks such as BVH (+81 billion), SAB (+58.5 billion), VIC (+55.2 billion) and HDB (+54.1 billion) were also strongly net bought by foreign investors.

This reversal somewhat strengthens market confidence in the trading sessions after the holiday, when foreign investors are expected to continue to play a role in supporting sentiment and liquidity.

According to expert Han Huu Hau, the factors to observe in the first week after the holiday will be: foreign investors' movements, the spread of cash flow to midcap groups, and especially the recovery ability of pillar stocks such as VHM and FPT after the correction.

"If the net buying trend continues, especially in banking stocks such as MBB and HDB, the market may soon regain its upward momentum, with the support zone around 1,220 points expected to hold," Mr. Hau assessed.

In the context of stable low interest rates and positive growth prospects for the banking industry in 2025, banking stocks are expected to continue to attract investment capital in the medium and long term.

Source: https://thoibaonganhang.vn/dong-tien-ngoai-mua-rong-manh-co-phieu-ngan-hang-163490.html