Cash flow from savings still flows strongly into stocks

According to data from the Vietnam Securities Depository (VSD), domestic investors opened 172,695 new securities accounts in September. This number decreased by more than 15,000 accounts compared to the previous month but is still the second highest level in more than a year.

Thus, the number of new accounts opened by domestic investors has broken the 4-month streak of consecutive increases compared to the previous month. Also last month, foreign investors opened 253 new accounts.

In the first 9 months of 2023, domestic investors opened a total of 924,205 new securities accounts. Of which, individuals are still the main force when opening 923,211 new accounts. By the end of the third quarter of 2023, the total number of domestic individual investor accounts exceeded 7.76 million accounts.

The number of newly opened securities accounts has remained high in recent months. Graphics: Duc Manh

In September, the average trading value of the whole market increased by 11.2% compared to the previous month, up 85.4% compared to the same period last year to VND 28,624 billion/trading session. Specifically, compared to the previous month, the trading value on HOSE increased by 12.7% to VND 25,131 billion/session; HNX increased by 9.0% to VND 2,387 billion/session; UPCOM decreased by 11.3% to VND 1,105 billion/session.

The stock market continues to show its attractiveness to cash flow in the context of rapidly cooling interest rates and other investment channels such as real estate and corporate bonds remaining quiet.

According to the analysis team of FIDT JSC, the increase in the number of individual investors is a double-edged sword as the psychology of this group has a great influence on the index. When the psychology is excited, the market increases strongly and vice versa.

For example, according to previous analysis by FIDT, the State Bank issued treasury bills with the purpose of balancing the exchange rate, not to reverse the policy. However, individual investors reacted negatively to this news, combined with information about margin cuts from major securities companies, leading to sharp declines. The VN-Index fell nearly 100 points in just 1 week from September 20 to 28, 2023.

"The index is still heavily influenced by individual investors as the transaction value of this group is much larger than the total of the remaining groups," the expert assessed.

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