Investors closed more than 500,000 securities accounts.

SGGPO 07/11/2023 16:45

Market liquidity has decreased, making it difficult for the VN-Index to continue its upward trend. In related news, 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 7th faced profit-taking pressure from investors after rising approximately 70 points from its recent low, causing the VN-Index to open lower. Except for a few minutes above the reference level, the VN-Index remained mostly in the red for most of the trading session. The market experienced continuous fluctuations as selling pressure increased while demand at higher prices was relatively weak, resulting in a nearly 10-point decrease at the close. The market also lost support from foreign investors, who reversed their position to net sell nearly 240 billion VND on the HOSE exchange after two previous net buying sessions.

Chứng khoán rực đỏ trong phiên giao dịch 7-11

Stocks plunged in trading on November 7th.

Although there wasn't a sharp drop to the floor price, most sectors declined. Except for a few stocks that bucked the trend, such as CTD (up 4.09%), HPG, MWG, and LPB (up nearly 1%), the rest of the market was in the red.

Securities stocks fell sharply: SSI down 2.24%, VND down 2.14%, HCM down 1.64%, VCI down 1.55%, AGR down 1.09%, BVS down 1.67%, VIX down 1.44%... Real estate and construction stocks also declined with VHM down 2.44%, DXG down 2.47%, PDR down 2.41%, BCM down 2.02%, DIG down 1.97%, DRH down 2.25%, NLG down 1.8%, HDC down 1.22%, KDH down 1.5%, CII down 1.53%... Banking stocks also leaned heavily into the red with VCB down 1.34%, TCB down 1.29%, SSB down 3.56%, STB down 1.53%, HDB down 1.37%...

At the close of trading, the VN-Index fell 9.37 points (0.86%) to 1,080.29 points, with 378 stocks declining, 138 rising, and 83 unchanged. On the Hanoi Stock Exchange, the HNX-Index also fell 1.3 points (0.59%) to 218.29 points, with 103 stocks declining, 65 rising, and 50 unchanged. Market liquidity continued to decrease by approximately 1,000 billion VND compared to the previous session, with the total trading value across the market around 15,000 billion VND.

In a related development, information from the Vietnam Securities Depository and Clearing Corporation (VSD) indicates that in October 2023, domestic individual investors closed 545,326 securities accounts. Accordingly, the number of investor trading accounts decreased from 7.8 million at the end of September to 7.45 million by the end of October. This is an unprecedented event in the 23-year history of the Vietnamese stock market. Individual investors closed their securities accounts during a month of negative trading in the Vietnamese stock market, with the VN-Index falling nearly 11%. Simultaneously, foreign investors recorded their seventh consecutive month of net selling, with a total net withdrawal from the stock market in October 2023 of VND 2,724 billion.

The sharp decline in the number of individual investor securities accounts may stem from securities data cleaning efforts. Previously, in October 2023, the Prime Minister instructed the State Securities Commission to connect to the national population database to clean up data on securities traders (comparing information to ensure consistency, eliminating incorrect, duplicate, or fictitious data). This task was to be completed by November 2023.

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