Vietnam Securities Depository (VSD) has just announced the number of securities trading accounts (TKGD) of domestic and foreign investors.
Accordingly, domestic investors opened 188,298 new securities accounts in August, an increase of nearly 38,000 accounts, equivalent to 25% compared to the number of newly opened accounts compared to the previous month, the highest level in more than a year since September 2022.
Of these, individual investors opened 188,165 new accounts and institutions opened 133 new accounts. As of August 31, 2023, the number of domestic individual investor accounts exceeded 7.6 million accounts, equivalent to nearly 8% of the population.
Along with the improvement in the number of newly opened accounts, market liquidity also improved significantly when the VN-Index reached a short-term peak in August. The average matched transaction value on HoSE reached over VND 22,000 billion, an increase of more than 10% compared to the previous month and the highest level in more than a year since April 2022.
The more active trading also comes from a number of old investors reactivating their accounts after a period of "withdrawal" from the market and the amount of margin money being activated after interest rates tend to decrease. Currently, the operating interest rate is close to the lowest level of 2020.
Foreign investors continued their net selling trend, although the intensity has been less intense. In August, foreign investors net sold nearly VND3,000 billion on HoSE. This is the fifth consecutive month of net selling by this group.
In August 2023, foreign investors opened 337 new accounts, a positive increase compared to the previous month's figure of 212. At the end of August, foreign investors were trading a total of 44,431 accounts.
Mr. Dinh Quang Hinh - Head of Macro Analysis and Market Strategy Department, VNDIRECT Securities Company, said that the stock market is still under pressure related to the increase in exchange rates, inflationary pressure returning in the last months of the year, and the monetary policy space of the State Bank may be significantly narrowed.
Not to mention, the P/E valuation of the VN-Index has increased to 14.8 times, no longer as cheap as at the beginning of the year. In the context of market and stock valuations no longer being cheap, investors need to have a more flexible strategy, maintain a balanced portfolio ratio, and limit the use of financial leverage to avoid risks .
Source
Comment (0)