Investors say they are ‘under the basket’, the broker makes a big profit, is there a story about the securities company ‘playing football and blowing the whistle’?

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Investors say they are “under the basket”?

Transparency in operations of a securities company is still a big question mark for the securities investor community, when a company operates both proprietary trading and securities brokerage activities. . This raises concerns about a conflict of interest between securities companies and investors.

This topic is becoming a “hot” topic on securities forums, especially after investors discovered that S… (a company with a leading brokerage market share) was close to hereby recommend to investors to buy STB shares at the price range of 32,000 VND/share, VRE at the price range of 32,000 – 33,000 VND/share.

But at the same time, this proprietary securities company took profit on STB stock with an average price of 33,480 dong/share, and took profit on VRE at an average price of 33,790 dong/share.

“Through this incident, once again requesting the SSC to ban securities companies from acting as both brokers and self-trading securities, has caused serious conflicts of interest and turned investors into victims of securities companies. stock. Not to mention that the securities company can scan the accounts of investors to know the status of the accounts. When the market is unsecured, securities companies can completely calculate which codes need to be released to lower the prices of those codes so that the trading department can buy them at a cheaper price. NVL investment said.

In the opinion of VLL investors, securities companies should be banned from self-trading or must disclose information and report buying/selling transactions 7 days in advance.

Debating this topic, GCL investors believe that having participated in the market, investors especially F0 should equip themselves with basic knowledge so as not to be influenced by buy/sell recommendations from investors. Securities Company.

According to Mr. GCL, if there is no knowledge but only money, investors no matter how much money they have, they are just like salt in the pool.

“The securities company has a much lower cost of capital than the later buyers. It’s okay to go with the list they do business, but you have to have the knowledge to find out when they recommend the price is cheap? Has the price increased much? And the most important thing is to hold for a long time to win, “said investor GCL.

According to this investor, the fact that a securities company makes recommendations is like a product advertising business. If consumers believe it, they will buy it, if they don’t believe it, they won’t buy it. Instead, to stay with the market, investors have to experience failure, thereby drawing valuable lessons. When the element of vigilance, greed control, and winning formula are forged as a habit honed over the years, then investors have won against themselves.

“Nobody wins 100% in this market. Investing 10 stocks, winning 6-7 losing 2-3 or drawing 1 is already a great success in the stock market. So instead of blaming your failure on others, look at yourself to reset, improve your level… Stocks are not everything. ” – GCL investor gives advice.

The securities company’s proprietary trading activities won big

The financial statements for the first quarter of 2022 of many securities companies show that proprietary trading activities won big, significantly contributing to the company’s overall profit.

For example, Saigon Securities Joint Stock Company (SSI) announced its consolidated business results in the first quarter of 2022 with revenue and pre-tax profit of VND 2,068.4 billion and VND 883.3 billion, respectively, an increase of 36 .2% and 66.6% compared to the first quarter of 2021.

In which, revenue from securities brokerage activities reached VND 599.5 billion, up 37%. Notably, investment activities recorded a revenue of 633.2 billion dong, up 5.6%.

VNDirect Securities JSC (VND) also announced its own financial report for the first quarter of 2022 with revenue of VND 1,767 billion, up 61% over the same period last year. The company’s profit before and after tax was 956.3 billion dong and 762.2 billion dong, respectively, up 48% over the same period. This is the record profit in a quarter that VND has achieved since its operation.

Notably, the profit from financial assets recorded through profit/loss (FVTPL) reached more than VND 664 billion, up 45%. In the proprietary trading portfolio of listed stocks of VNDirect, PTI shares have the largest proportion with a fair value of nearly 952 billion dong and also the most effective investment when the original price is only nearly 267 billion dong. In addition, this securities company also holds a large number of shares of NLG, VPB, MWG, LTG,…

Similarly, VIX Securities Joint Stock Company (code VIX) also announced its own financial report for the first quarter of 2022 with a proprietary trading portfolio of listed, unlisted stocks and bonds that increased by nearly VND 1,000 billion compared to the beginning of the year. to nearly 2,600 billion VND. Meanwhile, the original price was recorded at 2,393 billion dong, temporary profit of more than 200 billion dong.

And BIDV Banking Securities Company (BSC) also just reported a 36% increase in Q1 profit thanks to a big win in proprietary trading. Profit from financial assets recognized through profit/loss (FVTPL) increased by 33% over the same period to 97.2 billion dong. As of March 31, BSC’s proprietary trading portfolio had a fair value of 1,282 billion VND, an increase of nearly 240 billion VND compared to the beginning of the year.

Listed stocks with a large proportion in BSC’s portfolio include STB, TCB, VIB, PET, TDP, MIG in which TCB, VIB and PET were the names that were bought strongly in the first quarter. PET is the most effective investment in the portfolio, temporarily recording a profit of 21 billion dong while the original price is just over 28 billion dong.

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