Securities Commission: Monitor unusual trading, check for signs of profiteering

Securities Commission: Investors must perceive and evaluate comprehensively

Speaking to Dan Tri reporters after today's trading session (October 26), a representative of the State Securities Commission (SSC) recommended that investors need to comprehensively review and evaluate the macroeconomic situation as well as receive official information from businesses, and be cautious with false rumors in the market to make accurate and effective decisions.

The management agency affirmed that it will closely monitor unusual transactions, check for signs of profiteering, spreading false and fake rumors in the market, affecting investors' psychology and causing confusion. If detected, the State Securities Commission will handle it strictly.

The representative of the State Securities Commission said that the market is still operating stably, demonstrated by improved liquidity as well as the active entry of a number of new investors recently.

Ủy ban Chứng khoán: Giám sát mua bán bất thường, kiểm tra dấu hiệu trục lợi - 1 — Investors need to have a comprehensive view and assessment of the macroeconomic situation as well as receive official information from businesses (Illustration: Hai Long).

Specifically, after a period of stagnation in the first quarter with an average trading value per session reaching about VND 11,300 billion, down 44% compared to the average in 2022, market liquidity has since improved significantly.

In the second and third quarters, market liquidity improved, with average trading value reaching VND21,166 billion/session in July, then increasing to VND25,667 billion/session in August and VND25,264 billion/session in September. In October, the average trading value decreased by more than 31% to about VND17,404 billion/session (as of October 19), but this level is still very remarkable.

Notably, the number of investor accounts in the stock market has continued to increase in recent times. In the past 9 months, investors opened 926,200 new accounts, bringing the total number of investor accounts to more than 7.8 million as of the end of September, an increase of 13.4% compared to the end of 2022.

This shows investors' interest in the market, as well as the gap between stock investment channels and people is increasingly shortening.

Market developments are affected by many domestic and international macroeconomic factors such as inflation, tight monetary policies in many countries, pressure on exchange rate management, etc. Many major economies, including Vietnam's important trade partners, have slowed down their growth, even falling into recession, affecting Vietnam's import and export activities.

However, the Government and ministries, branches and localities have made many efforts to remove difficulties for businesses and people, promote economic growth, improve the investment environment, and lower interest rates have supported production and business activities. Market liquidity has improved, attracting domestic investors' cash flow back to the stock market.

VN-Index decreased more than 46 points

The stock market has just experienced a deep decline amid the anxiety of many investors. The VN-Index closed the session on October 26 down 46.21 points, or 4.2%, at 1,055.45 points; the HNX-Index fell 12.03 points, or 5.3%, and the UPCoM-Index fell 2.78 points, or 3.25%.

However, market liquidity increased sharply thanks to low-price demand. Trading volume on the HoSE was approximately 1.18 billion units, corresponding to a transaction value that skyrocketed to VND23,243.65 billion.

Notably, the significant contribution to the overall decline of the VN-Index was the plunge in the "Vin" group of stocks. VIC and VRE hit the floor, VHM had over 5.8 million units left to sell at the floor price.

Ủy ban Chứng khoán: Giám sát mua bán bất thường, kiểm tra dấu hiệu trục lợi - 2 — VN-Index lost 4.2% in the session of October 26 (Source: Tradingview).

According to Dan Tri reporter, on the evening of October 25, Vingroup Corporation (stock code: VIC) completed the offering of 250 million USD in international bonds. The bonds can be converted into Vinhomes shares (code: VHM) owned by Vingroup, maturing in 2028.

Vingroup said this is the first international convertible bond of a Vietnamese enterprise in 2023, marking the interest of international investors in the Vietnamese real estate industry, including Vinhomes.

Hedge literally means "fence". In finance, hedge is understood as price protection. Investors use hedge to reduce the risk of asset portfolio when market prices fluctuate against expectations.

Similar to the stock market, hedging is when an investor takes an investment position or a derivative position opposite to his current position to hedge against price risk.

When the price of the asset moves against initial expectations, the hedge position will generate a profit and this profit will offset the initial position of the portfolio.

This morning, a number of international investors participating in Vingroup's transaction to issue convertible bonds sold Vinhomes shares to complete the bond investment transaction (to implement hedging) - a source from Vingroup revealed.

Accordingly, this is a hedging sale between investors with a limited quantity and Vinhomes does not issue new shares so there is no dilution.

At the same time, convertible bond investors have also found investors for the majority of the shares they need to sell, so the impact on the market is assessed to be short-term and insignificant.