A series of companies inject more money into the stock market, Vietcap's securities trading brings in trillions of dong in profit.

The stock market did not perform very well in the third quarter of this year. Consequently, the proprietary trading segment of securities companies also experienced significant fluctuations.

Proprietary trading contributes significantly to the profits of securities companies - Photo: QUANG DINH

Proprietary trading includes financial assets recognized through profit/loss (FVTPL), investments held to maturity (HTM), and financial assets available for sale (AFS).

By the end of the third quarter of this year, the value of proprietary trading assets of securities companies reached approximately VND 242,400 billion, an increase of 10% compared to the end of last year.

Vietcap takes profits on its shares.

Each company, with its own preferences, will have different allocations. For example, at Vietcap Securities (VCI), chaired by Ms. Nguyen Thanh Phuong, profit-taking activities have reduced the size of AFS assets by approximately 21% compared to the beginning of the year.

Based on the purchase price, VCI's AFS value at the end of Q3 was VND 3,625 billion, compared to VND 4,594 billion at the beginning of the year.

In the third quarter, VCI sold off some stocks such as Masan 's MSN and MBBank's MBB. VCI reduced its investment holdings in stocks such as Khang Dien House's KDH, PNJ, and Sacombank's STB.

Conversely, VCI increased its investment in TDM of Thu Dau Mot Water Joint Stock Company,FPT , etc. Ms. Phuong's company also increased its bond investments to 540 billion VND.

Overall, VCI remains a highly successful unit in the proprietary trading segment, with its listed securities portfolio estimated to generate a profit of approximately 2,700 billion VND, corresponding to an increase of over 90% compared to the purchase price.

In the listed securities category, with a purchase price of 663 billion VND but a market price of 851 billion VND, VCI also estimates a profit of over 187 billion VND.

VCI reported a net profit of VND 215 billion in Q3 2024, a 20% increase compared to the same period last year. The company stated that it had realized profits from several investments, resulting in a significant increase in revenue from FVTPL assets…

Another securities company also has a fairly strong proprietary trading segment, engaging in "stock trading," such as VIX Securities.

The Q3 2024 financial report shows that VIX's EVTPL financial asset portfolio increased from VND 5,438 billion at the beginning of the year to VND 8,726 billion at the end of September.

VIX heavily invested in listed stocks with VND 3,457 billion, accounting for 40% of its portfolio, while unlisted stocks, investment trusts, and bonds accounted for 7%, 22%, and 31% respectively.

The report does not detail the specific stocks and bonds that VIX has invested in. However, investments in stocks, bonds, and investment trusts are currently yielding VIX a return of nearly 7%.

Many securities companies are adding more money to "play the stock market".

VCI was the most profitable in proprietary trading, but in terms of portfolio size, SSI, chaired by Nguyen Duy Hung, was the leading company in the industry.

However, the size of SSI's FVTPL portfolio has also decreased significantly, from VND 43,837 billion at the beginning of the year to over VND 36,919 billion after 9 months.

According to the Q3 2024 report, SSI's FVTPL financial assets had a cost basis of VND 36,919 billion, but their fair value (market price) only increased slightly, reaching approximately VND 36,975 billion.

Certificates of deposit remain the largest item in SSI's portfolio, with over VND 20,918 billion, a 30% decrease compared to the beginning of the year.

In the third quarter, SSI invested in stocks such as VPB of VPBank (original cost 854 billion VND), HPG of Hoa Phat (105 billion VND), TCB of Techcombank (91.8 billion VND), VHM of Vinhome (91.5 billion VND), etc.

In contrast to VCI, SSI's listed securities portfolio has increased significantly from over 1,000 billion VND at the beginning of the year to nearly 1,750 billion VND.

Meanwhile, VNDirect's proprietary trading is primarily in bonds. The Q3 2024 report shows that Ms. Pham Minh Huong's company increased its investment in both listed and unlisted bonds compared to the beginning of the year.

VNDirect's bond portfolio comprises VND 2,118 billion in listed bonds and VND 11,016 billion in unlisted bonds, representing increases of 208% and 46% respectively.

As of the end of September, VNDirect is holding shares in companies such as VPB (448 billion VND), HSG (379 billion VND), etc.

Several other companies also have significant bond investments, such as HSC, VPBankS, and TCBS… Among them, TCBS has reduced its holdings of listed bonds from VND 1,422 billion at the beginning of the year to VND 447 billion.

Techcombank's securities firm also reduced its portfolio of unlisted bonds from VND 12,147 billion to VND 11,171 billion after nine months. Conversely, TCBS increased its investment in listed stocks by nearly 2.3 times, reaching almost VND 1,130 billion at the end of September.

According to a securities firm executive, unlike many foreign-owned companies, domestic companies are focusing on proprietary trading alongside margin lending and brokerage.

Proprietary trading has made a significant contribution to overall market liquidity recently.

However, the story of a securities company that both trades stocks for profit and acts as a broker and advisor to clients has long raised some concerns about conflicts of interest.

Source: https://tuoitre.vn/loat-noi-rot-them-tien-choi-chung-vietcap-tu-doanh-chung-khoan-lai-nghin-ti-20241027111654028.htm