Market is booming, investors are "racing" to open securities accounts

Vietnam Securities Depository (VSD) has just announced the number of securities trading accounts (TKGD) of domestic and foreign investors.

Accordingly, domestic investors opened 145,864 new securities accounts in June, an increase of more than 45,000 accounts compared to the previous month, the highest level in 10 months since September 2022. This is the second consecutive month that the number of new accounts opened by domestic investors has increased sharply after hitting bottom in April.

Of which, individual investors opened 145,856 new accounts and institutions opened only 8 new accounts.

From the beginning of 2023 to the end of June, domestic investors opened a total of more than 2.3 million new accounts. By June 31, 2023, the number of domestic individual investor accounts reached 7.25 million accounts, equivalent to about more than 7.2% of the population.

Along with the increase in the number of newly opened accounts, market liquidity has also improved significantly as the VN-Index has increased by more than 4% since the beginning of the year. The average matched transaction value on HoSE reached over VND 15,000 billion, an increase of more than 40% compared to the previous month and the highest level in more than a year since April 2022.

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 turn around and decrease.

The State Bank of Vietnam (SBV) has also reduced its operating interest rates three times since the beginning of the year. This agency also thoroughly implemented the viewpoint of requiring commercial banks to reduce output interest rates to support businesses in the difficult business context.

Lower interest rates have made the stock market more attractive than at the beginning of 2023. Experts expect cash flow to gradually shift from fixed income investment channels to stocks.

However, foreign investors continued their net selling trend, although the intensity was somewhat less intense. In June, foreign investors net sold nearly VND400 billion on HoSE. This was the lowest net selling value in the second quarter after this group net sold VND2,800 billion in April and over VND3,000 billion in May.

In June 2023, foreign investors opened 196 new accounts, down from 221 the previous month. Of which, individual investors opened 174 new accounts, and organizations opened 22 new accounts. At the end of June, foreign investors were trading a total of 43,882 accounts .

Source