The stock market fluctuates continuously, the State Securities Commission will strengthen supervision of securities companies.

How did the stock market perform in the first 6 months of the year?

According to a report by the Ministry of Finance , the Vietnamese stock market (TTCK) in the first months of 2024 experienced many alternating sessions of increase and decrease, generally continuing the recovery trend compared to 2023.

At the end of the session on March 29, the VN-Index reached 1,284.09 points, up 13.6% compared to the end of 2023; the HNX-Index reached 242.58 points, up 5% compared to the end of 2023.

The State Securities Commission will strengthen supervision of securities companies. (Photo: ST)

However, entering the second quarter of 2024, the Vietnamese stock market experienced many sessions of decline, especially from the beginning of April to April 23, 2024, due to the impact of many domestic and foreign factors.

Globally, economic growth continues to remain low, especially in the EU; political tensions and military conflicts escalate in the Middle East.

Domestically, the USD/VND interest rate gap remains high, exchange rate pressure has increased in recent times, raising concerns about the possibility of a change in monetary policy.

From a technical perspective, the VN-Index at 1280 - 1300 is still a psychological barrier for investors in the market.

After short-term correction sessions following the economic cycle of the stock market under economic and political pressures in the world in the first quarter of 2024, the Vietnamese stock market has recovered positively in response to the recovery of world stock markets.

In addition, the positive growth in the first quarter business results of domestic listed enterprises was announced (20% growth compared to the same period in the first quarter of 2023) and positive expectations for the semi-annual business results of listed enterprises.

At the end of the session on June 28, the VN-Index reached 1,245.32 points, up 10.2% compared to the end of 2023; the HNX-Index reached 237.59 points, up 2.8% compared to the end of 2023.

In parallel with the index's performance, market liquidity continued to grow in the first quarter of 2024 with an average trading value of VND 23,895 billion/session, an increase of 35.5% compared to 2023.

Market liquidity in April decreased slightly compared to the first quarter of 2023 and recovered from May. In the first 6 months of the year, the average trading value reached VND 24,598 billion/session, an increase of 39.9% compared to the average in 2023.

By the end of June 2024, the market had 729 stocks and fund certificates listed on the two Stock Exchanges and 878 stocks registered for trading on UPCoM with a total listed and registered trading value of VND 2,176 trillion, up 2.3% compared to the end of 2023 (equivalent to 21.3% of estimated GDP in 2023).

The market capitalization of stocks on the three exchanges HoSE, HNX and UPCoM on June 28 reached VND 7,066.1 trillion, up 19.0% compared to the end of 2023; equivalent to 69.1% of estimated GDP in 2023.

The State Securities Commission will strengthen supervision of securities companies.

The Ministry of Finance forecasts that the Vietnamese stock market will continue to face many challenges in the last 6 months of the year. Therefore, in order for the market to continue to grow steadily, the Ministry of Finance and the State Securities Commission (SSC) will apply a number of solutions.

Firstly, perfecting the legal framework on market development policies, focusing on reviewing the Securities Law, Decrees and Circulars guiding the securities sector; perfecting the drafting and development of Decrees and Circulars guiding legal documents according to plan.

Second, actively and proactively discuss and coordinate with relevant ministries, branches, rating organizations, major international investors and market members to implement solutions to soon upgrade the Vietnamese stock market according to the set roadmap to attract the participation of foreign investors in the Vietnamese market.

Third, promote information and propaganda work on macroeconomic policies, economic management of the Government, ministries, branches, localities and economic growth results in many aspects, helping the investing public to receive complete, accurate and timely information, limiting the psychological impact of rumors and fake news in the market.

Fourth, strengthen close monitoring of information, combat false rumors in the stock market, especially rumors and bad news aimed at profiteering, causing psychological instability in the market; strictly handle some typical cases to create deterrence, strengthen discipline in the market.

Fifth, strengthen supervision and inspection of capital mobilization and use activities of issuing organizations; strengthen inspection of auditing activities of auditing units and auditors; closely coordinate with the Association of Practicing Auditors in training, supervising and handling violations of auditing companies and auditors.

Sixth, strengthen close supervision of the activities of intermediary organizations, focus on monitoring and inspecting margin lending activities, financial services, ensuring financial safety indicators and legal regulations at securities companies and fund management companies.

At the same time, continue restructuring securities companies and fund management companies according to the project approved by the Prime Minister; strengthen the development of securities investment funds to balance between institutional investors and individual investors.

Seventh, enhance the role and responsibility of the supervisory lines, in which the role of the first supervisory line, which is securities companies, is promoted, and supervision of these companies is strengthened to promptly prevent and detect violations in the market.

The State Securities Commission also stepped up inspection and examination, strictly handling violations in the stock market to strengthen discipline in the market, aiming at the development of the stock market in a transparent and sustainable manner; improving the quality of human resources for inspection and supervision; perfecting and putting into use the Information Technology System serving inspection and supervision.

Source: https://www.congluan.vn/thi-truong-chung-khoan-troi-sut-lien-tuc-ubcknn-se-tang-cuong-giam-sat-cac-cong-ty-chung-khoan-post303350.html