Domestic investors opened nearly half a million new securities accounts in May, nearly double the old record
According to data from the Vietnam Securities Depository (VSD), domestic investors opened 476,455 new securities accounts in May, double that of the previous month and a record number in history.
The number of new accounts opened by domestic investors in the past month was even 200,000 higher than the old peak reached in March. Individual investors continued to be the core when opening 476,332 new accounts next to them. 123 accounts come from institutional investors.
Generally, in the first 5 months of the year, domestic investors opened a total of more than 1.38 million securities accounts, nearly equal to the figure for the whole year of 2021 (1.53 million accounts). The total number of domestic investor securities accounts by the end of April reached 5.6 million, accounting for nearly 5.7% of the population.
However, it should be noted that this number does not really reflect the percentage of people participating in securities because an investor can have many accounts at many securities companies, not to mention accounts in “passive” status. “.
New account opening in the country suddenly increased
The recent massive opening of securities accounts by domestic investors has been caused by many factors, the most significant of which is (1) the low deposit interest rate; (2) The corporate bond channel is tightened; (3) The economy is expected to recover strongly after the pandemic; (4) Valuation of Vietnam’s stock market is attractive compared to other countries in the region; (5) Prospects for upgrading to emerging markets in the next 2 years; (6) People have less choice of investment channels and (7) The application of eKYC makes opening an account more convenient. (8) Some banks also deploy programs to automatically open securities accounts at affiliated securities companies for customers to open accounts.
In May, the stock market had many strong fluctuations, VN-Index dropped deeply in the first half of the year but recovered positively in the rest to close the month with a decrease of 5.4%. However, market liquidity continued to decline significantly despite the record number of newly opened shares.
The stock market liquidity in May recorded an average trading volume and value of over 14,951 billion dong and 540.22 million shares, respectively, down 32.4% in value and 21% in volume, respectively. volume compared to the previous month. On HoSE alone, the average session liquidity dropped to the lowest level since February 2021.
Contrary to the wave of massive participation of domestic investors, in May, foreign investors only opened 256 new accounts, down 112 accounts compared to the previous month. However, foreign investors had the second consecutive month of net buying with a value of nearly 3,200 billion dong. Before that, foreign investors also suddenly turned to a net buying of 4,000 billion dong in April, thereby ending the chain of 8 consecutive months of net selling.
The factor that pushed foreign investors to continue to be net sellers in the previous period was said to come from the Fed’s forecast of tight monetary policy in the context of high inflation in many countries. However, when the roadmap for raising interest rates is clear, foreign investors are expected to return to net buying Vietnamese stocks soon.
In addition, the story of market upgrading is also expected to promote the return of foreign investors in the future. Currently, the size of capital that funds can allocate to frontier markets is only about $ 95 billion, while the size of capital for emerging markets is about $ 6.8 trillion. Mr. Nguyen Quang Thuan, Chairman and CEO of FiinGroup, said that if Vietnam is upgraded to Emerging Markets, Vietnam can also receive tens or even hundreds of billions of USD into the market.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
