Strategy Weekly: The foreign selloff continues

Weekly — Mar 22

The VNI continued to consolidate at below record levels last week, in line with our expectation. The market closed at 1201 points on Thursday after US markets rallied on the back of the Fed’s positive jawboning but declined marginally to 1194 on Friday. Foreigners have been net selling far more than they did during the COVID-19 panic of March 2020. But daily turnover in Vietnam remains very strong, and we think the VNI will eventually break out over its record high close of 1204 points (April 2018).