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Declining market liquidity makes it difficult for the VN-Index to continue its upward momentum. Related developments, in October 2023, domestic individual investors closed 545,326 securities trading accounts, which is also one of the reasons for the sharp decline in market liquidity.
The stock market on November 7, under pressure from investors to take profits, after having increased by about 70 points since the latest bottom, caused the VN-Index to open the session down. Except for a few minutes when it rose above the reference, the VN-Index was mostly in red for the rest of the time. The market continuously fluctuated when supply increased strongly while demand at high prices was quite weak, causing the VN-Index to close the session down nearly 10 points. The market also lost support from foreign investors when they turned to net sell nearly 240 billion VND on the HOSE floor after 2 previous net buying sessions.
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Stocks in red in trading session 7-11 |
Although there was no floor price drop, most industry groups decreased. Except for a few stocks that went against the market such as CTD up 4.09%, HPG, MWG, LPB up nearly 1%... the rest of the market was in red.
The securities group decreased sharply: SSI decreased by 2.24%, VND decreased by 2.14%, HCM decreased by 1.64%, VCI decreased by 1.55%, AGR decreased by 1.09%, BVS decreased by 1.67%, VIX decreased by 1.44%... The real estate and construction group also decreased with VHM decreased by 2.44%, DXG decreased by 2.47%, PDR decreased by 2.41%, BCM decreased by 2.02%, DIG decreased by 1.97%, DRH decreased by 2.25%, NLG decreased by 1.8%, HDC decreased by 1.22%, KDH decreased by 1.5%, CII decreased by 1.53%... The banking stock group also leaned towards red with VCB decreased by 1.34%, TCB decreased by 1.29%, SSB decreased by 3.56, STB decreased by 1.53%, HDB decreased by 1.37%...
At the end of the trading session, VN-Index decreased by 9.37 points (0.86%) to 1,080.29 points with 378 stocks decreasing, 138 stocks increasing and 83 stocks remaining unchanged. At the end of the session at Hanoi Stock Exchange, HNX-Index also decreased by 1.3 points (0.59%) to 218.29 points with 103 stocks decreasing, 65 stocks increasing and 50 stocks remaining unchanged. Market liquidity continued to decrease by about 1,000 billion VND compared to the previous session, the total transaction value in the whole market was about 15,000 billion VND.
In a related development, information from the Vietnam Securities Depository and Clearing Corporation (VSD) said that in October 2023, domestic individual investors closed 545,326 securities accounts. Accordingly, the number of investor trading accounts decreased from 7.8 million accounts at the end of September to 7.45 million accounts by the end of October. This is an unprecedented event in the Vietnamese stock market in its 23 years of operation. Individual investors closed securities accounts in the month when the Vietnamese stock market traded negatively with the VN-Index down nearly 11%. Along with that, foreign investors also recorded net selling for the seventh consecutive month, with the total net withdrawal value from the stock market in October 2023 being VND 2,724 billion.
The sharp decline in the number of individual investor securities accounts may come from the cleaning of securities data. Previously, in October 2023, the Prime Minister requested the State Securities Commission to connect to the national population database to clean up data on securities trading participants (comparing information to ensure consistency, eliminating incorrect, duplicate or virtual data). This task must be completed in November 2023.
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