Investors have 86,000 billion VND ready to be disbursed at securities companies at the end of the second quarter

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Vietnam’s stock market has just passed the first half of 2021, flourishing with a strong breakthrough of stock indexes. At the end of the trading session on June 30, the VN-Index stopped at 1,408.55 points, up 27.6% compared to the beginning of the year and was the second strongest stock index in the world.

The positive movements of the market over the past few months have been largely attributed to new investors, or “F0” investors. According to data from VSD, in the first half of 2021, domestic investors opened more than 620 thousand new securities accounts, larger than the total number of new accounts opened in 2020 and 2019 combined.

The fact that investors poured heavily into the stock market last year had many reasons, in which savings interest rates fell sharply or the absence of investment channels caused the cash flow to shift to the securities channel.

The participation of domestic investors helped “balance” the net selling pressure of foreign investors. In the first half of 2021, foreign investors net sold about VND 30,000 billion on HoSE, double the amount of net selling in the whole previous year, but the market still gained positive points thanks to cash flow from domestic investors.

Although the market lacked foreign cash flow, the cash flow from “F0” investors made up for it, pushing the market liquidity to continuously set new records and trading sessions with “billion dollars” of liquidity was the most important thing happens quite often. In the second quarter of 2021 alone, the average matching value of HoSE reached a record of VND 19,838 billion/session, up 41% compared to the previous quarter and nearly 5 times higher than the same period in 2020.

The entry of a new class of investors also pushed the margin balance at securities companies to a record high. Data at the end of the second quarter of 2021 shows that the outstanding loans at securities companies amounted to VND 145,000 billion (mainly margin balance), an increase of about 30,000 billion compared to the end of the first quarter.

In the history of Vietnam’s stock market, there were many times when the market had a strong correction when the margin at securities companies was “stretched”. However, at this time, the cash flow from new investors is constantly entering the market to help the market become quite stable.

Data from securities companies show that at the end of the second quarter of 2021, customer deposit balance at securities companies was about VND 86,000 billion, an increase of about VND 21,000 billion compared to the previous quarter and this is a record number in history. In which, it is mainly deposits of investors who trade securities under the management method of securities companies. This is the amount of money that is available in the investor’s account and has not been disbursed as of June 30, 2021.

In which, VPS is currently the securities company with the largest customer deposit balance, amounting to more than VND 15,600 billion, doubling compared to the beginning of the year. Recently, VPS has made a spectacular breakthrough to become the securities company with the largest brokerage market share on HoSE, HNX, UPCom and the derivatives market. Therefore, having a large amount of investor deposits in the account is not too surprising. Next in terms of customer deposit balance at the end of the second quarter are SSI (VND 7,984 billion), VND (VND 7,961 billion), Mirae Asset (VND 5,194 billion).

With the HoSE having solved the problem of order blocking, the trend of “F0” investor cash flow into the market is forecasted to be even stronger and the numbers on deposit balance or margin balance will still be established new heights in the near future.

Source: – Translated by