HÀ NỘI — The capital flow from exchange – traded funds (ETFs) is returning to the stock market after the market correction in October caused the VN-Index to tumble by nearly 11 per cent but the inflow is not as strong as expected. However, the net withdrawal value of ETFs narrowed down significantly after recording the strongest monthly net withdrawal value of nearly $4.5 trillion in more than two years in August, indicating that ETFs were returning to the market after the strong correction in October. After recent corrections, the generation valuation of the Vietnamese stock market was at a lower level than two months ago, raising expectations that foreign cash would flow strongly into the stock market like what had happened at the end of 2022. SSI Research in a recent report pointed out that the market correction in October reactivated the inflow of ETFs into Việt Nam’s stock market after strong net withdrawal values in the two previous months. However, the level of net inflow would not be significant as the macroeconomic variables had not seen clear improvements.

Source: Viet Nam News November 18, 2023 06:43 UTC