Vietnamese equities are outperforming the rest of Southeast Asia as the government is to remove a 49% foreign ownership cap in September.
The Vietnamese stock market has climbed 13.4% and is leading gains in Southeast Asia followed by the Philippines so far this year.
Investors are preferring large cap names as they offer more liquidity. Here are some top performers:
- Vietcombank which is the largest firm by market value, has jumped 55%
- BaoViet Holdings, top insurer, has gained 91%.
In the second quarter, net foreign buying of Vietnamese shares rose to $135 million, the highest for any quarter since 2007, according to Reuters.
“The foreign ownership restrictions have been “a major hurdle” to developing Vietnam’s capital markets and have deterred away foreign investment,” Andy Ho, CIO of Ho Chi Minh City-based VinaCapital, which manages about $1.4 billion in assets, told Bloomberg.
Foreign investors can now increase holdings to 100% from 49% starting in…
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