At the end of the session on June 7, the VN-Index continued to record the 6th consecutive gaining session when closing at 5 points, up 1.109,54 points compared to the previous session; HNX-Index increased 1,23 points to 1,61 points; Upcom increased 230,33 points to 0,13 points.
Notably, the liquidity on HOSE exploded when it exceeded 18.000 billion dong with a trading volume exceeding 1 million shares. If all 3 exchanges are included, the liquidity is more than 20.000 billion dong. Many securities stocks continued to increase strongly along with the market, continuing the breakout momentum in the past few days. In which, TVS hit the ceiling by 6,85% to 31.200 dong; AAS increased by 3,57%; TCI increased by 3%; SBS increased by 2,63%…
The VN-Index had a streak of 5 consecutive gains, surpassing 1.100 points. From the beginning of May until now, this index has increased by more than 5 points, equivalent to an increase of more than 74%. Meanwhile, many stocks in the stock market have increased from 7-20% in the same period, such as SSI which increased by about 40% to 20 dong; VND increased 25.100% to 32 VND; TVS increased by 19.500%; FTS increased by 40%; ORS increased by 25%…
Many securities stocks have recovered 20%-40% in a short time
Analyzing the factors that helped stocks to recover faster than the general market, Mr. Nguyen Thanh Lam, Director of Research and Analysis, Retail Banking Division, Maybank Investment Bank Securities Company, said that with the Government's decision. The government prioritized promoting economic growth, interest rates have been continuously operating in a downward direction. This has a correlation effect between investment channels in a more favorable direction for the stock market. The fact that the interest rate level is expected to continue to decrease will also make the cost of capital for investors in the market (margin interest) more reasonable, thereby stimulating the demand for trading again.
“The increase in trading volume and liquidity during the past month is a sustainable improvement because in terms of psychology, if liquidity increases, it will be a favorable business environment for securities companies. A good growth market helps the profit of securities trading to increase. According to statistics, proprietary trading contributes up to 40% of revenue for securities companies and with the market having increased by 10%, companies will benefit significantly,” said Mr. Nguyen Thanh Lam.
In the context of improved scores and liquidity, investors expect the business results of securities companies to be positive when revenue from brokerage fees, margin lending, and proprietary trading all increase… Based on predicting that interest rates will continue to decrease in the last quarters of 2023, it is forecast that the outlook of the market and securities companies will continue to improve in the coming time. In addition, when business results of listed companies are improved, growth share prices also contribute to the proprietary trading segment of securities companies.
Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, Analysis Division, VNDirect Securities Joint Stock Company (VND), said that the downward interest rate trend will have a positive impact on many industries, in which The stock market is one of the biggest beneficiaries. In the environment of falling interest rates, the securities industry benefits from both input (reducing capital costs) and output thanks to improved market liquidity and increased demand for margin when interest rates fall.
“According to observations, the cash flow has shown signs of returning to the market recently, reflected in the improved liquidity (trading value on all 3 exchanges sometimes exceeded 20.000 billion VND/session) and the number of accounts Newly opened securities in May increased sharply. The new cash flow into the market helped the VN-Index overcome the strong resistance area of 5-1.080 points,” said Mr. Dinh Quang Hinh.
