Top 5 market shares with new members
Although raw material prices fluctuated strongly, surprising domestic and international experts, the brokerage market share rankings did not change much.
The member holding the largest market share of commodity brokerage in Vietnam in the third quarter of 2023 is still Gia Cat Loi Commodity Trading JSC. With the continuous expansion of offices and branches across the country, Gia Cat Loi is accounting for 25.3% of the total market trading volume, an increase of 2.8% compared to the second quarter. This is also the member with the largest number of newly opened accounts in the past 3 months.
In second place, Saigon Futures JSC is occupying 21% of the brokerage market share. However, the gap with the following positions is narrowing. Ho Chi Minh City Commodity Trading JSC (HCT) and Friendship International Investment Company Limited (Finvest) are ranked third and fourth with 16.8% and 16.5% market share, respectively.
Notably, with thorough investment and a team of professional brokers, VMEX Commodity Trading JSC entered the top 5 for the first time, accounting for 2.45% of trading volume in Vietnam in the third quarter.
The Top 5 is a very exciting race between members with market shares of 1-2%. In particular, although it has only been a market member of the Vietnam Commodity Exchange (MXV) since the beginning of 2023, Nhat Linh Investment, Trade and Import-Export Joint Stock Company currently accounts for 2% of the country's market share.
Mr. Nguyen Ngoc Quynh, Deputy General Director of MXV said: “The brokerage market share results have truly reflected the dedication, professionalism and methodicalness of members in the commodity trading market. Members who have invested in human resources and information technology have achieved remarkable achievements.”
Oil prices rise more than 30%, crude oil trading increases sharply
In the third quarter, WTI oil prices linked to the NYMEX increased by more than 30%, reaching 90.8 USD/barrel at the end of the trading session on September 29. It is no surprise that the two oil products WTI and WTI micro oil are still the most traded products in Vietnam.
Specifically, WTI oil accounts for 16.4% and WTI micro oil accounts for 12.8% of the total commodity trading volume nationwide. Compared to the micro contract, the standard contract of WTI oil has a margin level 10 times larger (VND 178 million/contract compared to VND 17.8 million/contract). Therefore, the higher trading volume of the standard contract shows that the cash flow into the commodity market is very large.
Soybeans, wheat and Arabica coffee followed with 8%, 6.7% and 5.9% of total trading volume, respectively. Other attractive commodities in the metal group such as micro copper and platinum also appeared in the top 10, accounting for 4.4% and 3.9% of volume, respectively.
“With low margin levels, suitable for many different investment capital scales, liquidity is increasing over time, mini and micro contracts will continue to be the trend of the Vietnamese market in the coming time,” Mr. Quynh added.
Regarding options contracts, although MXV has just launched trading, nearly 150 contracts have been successfully traded in the third quarter of 2023. The options products all have high liquidity and are considered suitable for domestic businesses and investors.
Promote research and product development
As the organizer and operator of the commodity trading market in Vietnam, MXV has continuously worked with international partners to update the latest trends and trading products on world exchanges.
Recently, MXV has officially listed 3 more products linked to the London Metal Exchange (LME), including: FOB Türkiye rebar, CFR Türkiye scrap, FOB China hot rolled coil.
Thus, the group of metals traded at MXV currently includes 15 items, all of which are highly liquid and play an important role in industrial production activities worldwide.
In addition to researching and developing inter-connected trading products, MXV has been actively coordinating with ministries, departments and branches to build and operate specialized domestic commodity exchanges.
In August 2023, MXV, the Department of Industry and Trade of Ho Chi Minh City and the Department of Agriculture and Rural Development of Ho Chi Minh City signed a cooperation agreement to build a Pork Exchange in Ho Chi Minh City. Mr. Nguyen Ngoc Hoa, Chairman of the Board of Directors of Ho Chi Minh City State Financial Investment Company (HFIC) affirmed: “The construction of the Pork Exchange will put the interests of the people of the City first. The participating parties need to quickly research and develop a project so that the Exchange can soon come into operation.”
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