545,386 securities accounts "disappeared"
On the afternoon of November 7, Vietnam Securities Depository and Clearing Corporation (VSDC) made a "shocking" announcement about the number of securities trading accounts of domestic and foreign investors as of October 31, 2023 under management on VSDC's system.
Accordingly, the number of domestic trading accounts reached 7,400,592 accounts, of which: Individual investor accounts were 7,384,707 accounts; institutional investor accounts were 15,885 accounts.
Notably, according to VSDC, in October, the total number of newly opened accounts was 167,659 accounts and the number of closed accounts was 545,386 accounts, of which the number of closed accounts was the most at MB Securities Joint Stock Company (MBS) with 543,753 accounts.
While 545,386 securities accounts disappeared in October alone, the stock market witnessed a drying up of cash flow into stocks. Illustrative photo
Through discussions with MBS, VSDC learned that MBS is currently in the process of reviewing the list of accounts opened at MBS and proactively closing previously opened accounts that have not generated any transactions.
Previously, on October 10, at the program to celebrate the National Digital Transformation Day 2023, with the theme "Exploiting digital data to create value", Prime Minister Pham Minh Chinh, Chairman of the National Committee on Digital Transformation, requested that in November 2023, the State Securities Commission connect the national database on population to clean up data of securities transaction participants. This task will be completed in November 2023.
Money in stocks is exhausted.
Some people think that the disappearance of more than half a million securities accounts does not affect the stock market. However, the reality shows that not only in October, but also at the present time, the cash flow into stocks is exhausted.
Specifically, in October, after 22 trading sessions, the Ho Chi Minh City Stock Exchange recorded only 13,765,304,600 shares, equivalent to VND314,161 billion, successfully traded. On average, Hose had 621 million shares, equivalent to VND14,280 billion, transferred per session. This is a low level. Previously, the stock exchange witnessed many billion-dollar trading sessions.
In September, due to the National Day holiday, the total number of trading sessions of the market was only 19. After 19 sessions, the trading volume of the Ho Chi Minh City Stock Exchange reached 18,381,066,089 shares, equivalent to a trading value of VND442,488 billion. The average liquidity of each session on Hose reached 967 million shares, equivalent to VND23,289 billion.
Thus, in October, on average, each session, the Ho Chi Minh City Stock Exchange decreased by 346 million shares, equivalent to 35.8% in trading volume and decreased by VND9,009 billion, equivalent to 63.1% compared to September.
Previously, if calculating monthly cash flow, August was the most successful with 22,876,436,411 billion shares, equivalent to 507,443 billion VND successfully transferred.
Moving into November, the situation got worse as liquidity continued to decline. As of November 7, only 3.2 billion shares, equivalent to VND69,114 billion, were successfully transferred. The average daily liquidity was 640 million shares, equivalent to VND13,823 billion.
Stocks have not taken advantage of falling interest rates, gold's "slip"
It can be seen that this is a "golden opportunity" for money to flow into stocks when deposit interest rates continuously decrease, while gold suddenly has a "slip".
Specifically, at the end of October, the conflict in Gaza supported the precious metals market. However, in the first two sessions of this week, the world gold price continuously plummeted and moved away from the 2,000 USD/ounce mark. Meanwhile, the price of SJC gold caused buyers to lose several million VND/tael in just a few days.
Meanwhile, currently, the mobilization interest rate is being adjusted by banks to decrease deeply to just over 5%/year. At the beginning of this year, it was impossible to find much higher interest rates, from 8% to 9%/year.
When interest rates fall sharply, it is predicted that money will flow from savings to stocks. However, the reality shows the opposite, banks are still the channel chosen by people with money.
The State Bank's report shows that as of August 2023, the balance of deposits from residents in the credit institution system reached over VND 6.43 million billion, a sharp increase of 9.68% compared to the end of last year. Deposits from economic organizations also exceeded VND 6 million billion, no longer negative as in previous months but has returned to positive growth (+1% compared to the end of last year).
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