Number of newly opened securities accounts highest in 2 years, liquidity still 'scant'

Cash flow into the stock market remains cautious, with many trading sessions seeing only slightly more than ten trillion VND – Photo: QUANG DINH

New securities accounts continue to increase sharply.

According to data from the Vietnam Securities Depository and Clearing Corporation (VSD), the number of newly opened securities accounts reached over 8.7 million by the end of August, an increase of 331,205 accounts compared to the end of the previous month.

Of these, the strongest increase was still among domestic individual investors, with an additional 330,819 accounts in August – the highest level in over two years since June 2022.

Meanwhile, domestic institutional investors added only 121 accounts.

Notably, the number of foreign institutional investors tended to decrease, with only 4,558 accounts at the end of August, compared to 4,565 at the end of July.

Thus, cumulatively in the first eight months of the year, the number of securities accounts of domestic investors increased by more than 1.41 million accounts, reaching over 8.7 million.

The figures achieved are close to the target of reaching 9 million accounts by 2025 and 11 million accounts by 2030, according to the Government's Strategy for the Development of the Securities Market until 2030.

Looking back at August, the stock market recovered better in terms of points amid a gradually more positive outlook in Southeast Asian stock markets.

From a low price level, the market rebounded as external risk factors eased and some internal factors such as exchange rates also cooled down.

However, according to experts at Rong Viet Securities (VDSC), the market surged in the second half of August, but liquidity did not improve throughout the month.

According to VDSC, the increase in points has not yet spread widely, as the number of illiquid stocks and declining points still account for the majority on the HoSE exchange, reaching 45.64%.

The increase in stock accounts, coupled with low liquidity, shows that this investment channel remains popular. However, the sluggish performance, lacking significant capital inflows and experiencing several sharp, unexplained declines, has led individual investors to adopt a cautious, wait-and-see approach.

Was September more positive?

VDSC experts expect that in September, the positive macroeconomic environment and progress in resolving bottlenecks to meet FTSE Russell upgrade criteria will act as catalysts to help the Vietnamese stock market maintain its recovery momentum and return to an upward trend.

Meanwhile, SSI Securities experts believe that, looking back at historical data, September could be a good buying opportunity in anticipation of a market rebound in the final quarter of the year.

Favorable factors for the Vietnamese market are becoming more apparent compared to the previous period, including the continued economic recovery with supportive monetary and fiscal policies, more positive profit growth for listed companies in the second half of the year, and expectations of a gradual return of foreign capital.

Based on SSI Research's watchlist, year-on-year profit growth could reach 21.7% in the last six months of 2024; a significant acceleration from just 6.2% in the first six months of the year.

However, another stock market expert expressed concern that the impact of Super Typhoon Yagi on the northern region, especially key economic zones such as Hai Phong, Hanoi , Quang Ninh, and Thai Nguyen, could raise concerns about the economic outlook for the remaining months of the year.

"In the context of low interest rates, reduced exchange rate risks, and the Fed's impending interest rate cut… the stock market has recently experienced very low liquidity with a prevailing cautious sentiment. Only a few groups of stocks in the agricultural, steel, and consumer goods sectors have broken through," the expert told Tuoi Tre Online.

Source: https://tuoitre.vn/so-luong-tai-khoan-chung-khoan-mo-moi-cao-nhat-2-nam-qua-thanh-khoan-van-leo-teo-20240911090543177.htm