Sunday, August 16, 2020 2:48:50 AM - Markets open
VN-INDEX 850.74 -4.31/-0.50%
HNX-INDEX 116.23 -0.64/-0.54%
UPCOM-INDEX 56.74 -0.12/-0.22%
Derivatives market sees liquidity slump in April
Vietnam News - 5/10/2019 12:59:43 PM
 (0 ratings. You must sign in to rate.)
Trading volume of derivatives plummeted in April in parallel with the sluggishness of the underlying market, showing an increasingly close link between these two markets.
When the underlying market falls, investors will theoretically seek opportunities to make profit on the derivatives market, because it allows them to earn profits even as the underlying market declines.
The liquidity of the derivatives market often soars when the underlying market fluctuates. Thus, the derivatives market is an effective solution to retain investors, helping avoid a situation in which they withdraw from the stock market and cause collapses. But things moved in reverse in April.
According to statistics from the Hà Nội Stock Exchange (HNX), in April this year, along with the decline of the stock market, transactions on the derivatives market fell sharply compared to March. The average trading volume decreased by 40.45 per cent to about 80,700 contracts per session.
The session on April 22 had the lowest trading volume during the month – also the lowest level since the beginning of the year – reaching nearly 56,300 contracts. The session on April 9 had the highest trading volume, reaching over 103,900 contracts.
Notably, in the last trading session of the month on April 26, the derivatives market had an impressive session. Total trading volume for the session was 102,677 contracts – only slightly higher than the average figure of the previous month, 100,000.
The average trading value of the VN-30 Index basket in April reached just VNĐ1.4 trillion (US$59.9 million), down 30 per cent compared to the middle of March. The trading value of futures contracts on April 19 reached nearly VNĐ950 billion, equal to 50 per cent of the average trading value of VN-30 basket in March.
The open interest (OI) – the total number of open or outstanding options and futures contracts – decreased by 10.93 per cent from the previous month. By the end of April 29, the OI volume of the whole market reached 21,267 contracts.
The number of derivatives trading accounts continued to increase. At the end of April, the figure reached 70,112 accounts, up 4.04 per cent over the previous month.
In April, the transactions carried out by individual domestic investors accounted for a large proportion but still decreased significantly compared to the previous months, standing at 92.9 per cent of the total derivatives trading volume.
The proportion of transactions carried out by domestic institutional investors (including self-trading) increased sharply, reaching 6.84 per cent, 3.2 times higher than the previous month.
Excluding self-trading, the trading value of this group nearly tripled compared to March, reaching more than185,000 contracts, highest level since the inception of the derivatives market.
Transactions by foreign investors in April decreased according to the general trend of the stock market, reaching 8,165 contracts, equal to 60 per cent of the number seen in the previous month, accounting for 0.27 per cent of the total trading volume of the whole market. — VNS
Read original article here
Newer News
14/08 Shares move higher amid vaccine hopes
14/08 Lower interest rates not a good thing for equity market
13/08 New rule, portal developed for corporate bond market
13/08 Shares advance on the rise of oil stocks
07/08 Derivatives market sees liquidity rise in July
04/08 VN shares advance on hopes for virus block
04/08 Maximum 130,700 USD fine for listing violations: Draft decree
21/07 Stock market celebrates 20th birthday
18/07 Shares drop further on low liquidity
15/07 New regulations about corporate bond issuance
Older News
09/05 VN stocks expand losses for 5th day
08/05 Stock market sees positive growth in Q1
06/05 VN stocks plummet, insurance stocks hit hard
04/05 Purchases dominate foreign investors’ transactions on UPCoM in April
02/05 VN stocks may go sideways in post-holiday trading
01/05 Forestry exports on the rise
26/04 VN stocks decline from a two-day rally
24/04 VN stocks up on weak bottom-fishing purchases
23/04 VN stocks fall on disappointing Q1 earnings
17/04 "Vin" stocks drag on markets
Newsletter Signup
Top Stories
GDP forecast to grow 3.8 percent this year
New regulations about corporate bond issuance
Reference exchange rate remains unchanged
New traders flock to market
Reforms needed to attract foreign portfolio investment: fund manager
Market Update
Last updated at 3:10:02 PM
VN-INDEX 850.74 -4.31/-0.50%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.