Friday, March 29, 2024 3:18:45 PM - Markets open
VN-INDEX 1,284.09 -6.09/-0.47%
HNX-INDEX 242.58 -1.33/-0.55%
UPCOM-INDEX 91.57 +0.09/+0.10%
After recent dips, securities stocks washed out of billon-dollar market cap club
Vietnamnews - 10/27/2022 4:25:48 PM
 (0 ratings. You must sign in to rate.)
 The Vietnamese stock market is experiencing one of its worst times in recent years as the VN-Index plummeted below 1,000 points, the lowest in nearly two years.
 
A number of stocks plunged and even broke through the long-term bottom, but bottom-fishing cash flow remained on the sidelines, making the market more gloomy.
 
Amid the bear market, securities stocks were heavily affected as they faced strong sell-offs due to rising concerns about business results, which were influenced by the market's volatility. 
 
Ticker symbols such as SSI Securities Corporation (HoSE: SSI), VNDirect Securities Corporation (VND), Viet Capital Securities JSC (VCI), Ho Chi Minh City Securities Corporation (HCM), MB Securities JSC (MBS), and Saigon-Hanoi Securities JSC (SHS), all fell deeply, with their market prices reducing about 60-75 per cent from the peaks. As the result, the market capitalisation lost trillions, even tens of trillions of đồng.
 
Many securities firms set unprecedented records during the boom of the market from the end of last year to earlier this year. At that time, the securities group contributed to three representatives in the billion-dollar market capitalisation club, with SSI's value even exceeding the threshold of US$2 billion. But now, the figures are less than half and no securities names are found on the list.
 
For securities companies, market liquidity is always an essential factor that greatly impacts the results of their key business segments such as brokerage, proprietary trading and lending. A bull market will promote revenue from brokerage fees and investors' need for leverage, and vice versa.
 
Liquidity is also a key element determining market fluctuations and indirectly affecting the proprietary trading activities of securities firms. 
 
After the booming period of the market, the wave of new investors has cooled down significantly. The number of new accounts opened by domestic investors has continuously dipped, from over 450,000 accounts in May and June to only about 100,000 accounts in September, the lowest level in 14 months since July 2021.
 
The liquidity has also gone down dramatically, and there are no longer sessions with matching value of a billion dollars. Instead, investors' sentiment was gloomy, and there were even trading sessions where the matching value on the Hồ Chí Minh Stock Exchange (HoSE) was less than VNĐ7 trillion ($281.6 million). 
 
Since the beginning of October, the average matching value on the southern bourse has reached just over VNĐ9.4 trillion per session, a decrease of nearly 21 per cent month-on-month. This was also the lowest level since the beginning of 2021.
 
The market's liquidity also plays an important role in deciding the ability to rebalance the stock supply, which has surged after the massive increases in the capital of securities companies recently. Statistics showed that the number of outstanding shares of the securities group rose by 2.6 billion units compared to the beginning of the year, of which 2.2 billion are free floats.
 
This is a huge number, requiring ample cash flow to absorb. Therefore, securities stocks have been diligently searching for the bottom recently even though the market price has been deeply discounted from the top.
 
The liquidity has not showed signs of improvement even though margin lending has climbed again in the third quarter. 
 
Regarding the impact of bond tightening, KIS Securities believes that the income from bond issuance advisory activities of securities companies will be affected by the tightening of management policies after Decree 65 is implemented. The prospect of revenue growth coming from the redistribution of corporate bonds is forecast to be an uncertainty. VNS
 
Read original article here
 
Newer News
23/03 Shares sustain gains on strong investor confidence
20/03 Vietnamese securities companies race to boost capital amid high market demand
19/03 Large-caps pressured as increased profit-taking drives share decline
18/03 Market likely to be affected by Fed's meeting this week
18/03 Investors show strong interest in dividends at annual shareholders' meetings
15/03 VN-Index corrects, liquidity stays high
14/03 Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
13/03 Market rebounds from cautious sentiment
12/03 Losses in bank stocks weigh on market sentiment
12/03 ETFs continue to see strong outflows of foreign capital
Older News
12/10 Shares nosedive on massive selling force
04/10 Rising public investment to lift various stocks
28/09 Shares tumble for second day but slow on falling selling pressure
14/09 Corporate bond market has ample room for improvement
13/09 Delisting poor quality shares helps make market more transparent
09/09 Shares extend losses as major industries lose ground
06/09 Việt Nam one of world's best performing stock markets in August
05/09 Securities companies’ race heats up amid low market liquidity
30/08 Corporate bond issuance declines in the first six months
25/08 Shares rise for second day, propelled by food stocks
 
Newsletter Signup
Top Stories
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,284.09 -6.09/-0.47%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.