Thursday, September 24, 2020 12:07:14 AM - Markets open
VN-INDEX 912.50 +6.31/+0.70%
HNX-INDEX 132.64 +0.45/+0.34%
UPCOM-INDEX 60.96 +0.30/+0.50%
New traders flock to market
VietNamPlus - 6/10/2020 11:18:05 AM
 (0 ratings. You must sign in to rate.)
The steep decline of the local stock market as the coronavirus ravaged economies lured many new punters to the market.
Retail brokers have reported a jump in new clients opening financial market trading accounts, with more than 100,000 accounts registered in the past three months.
Of the new 100,000 accounts, 31,900 were opened in March and 36,700 were opened in April.
The number of new accounts opened at Ho Chi Minh City Securities Company (HSC) in March, April and May nearly doubled over the same period last year.
At VNDIRECT Securities Company, there were 10,230 new accounts opened in May and 15,000 accounts in April.
Besides the new investors, there has been a considerable amount of money coming from officials and employees within enterprises, according to Tran Minh Hoang, Head of Research & Analysis Department under Vietcombank Securities Company (VCBS).
“Everyone has flocked to cash in on betting opportunities via a stock market plunge inflicted by damage caused by the coronavirus crisis,” Hoang said.
“They have accumulated beaten-down stocks in the recent massive sell-offs during the peak of the COVID-19 pandemic.
“The steep fall of the stock market in March attracted investors as 60 percent of stocks on the market had market prices lower than their book values.
“Shares are proving too tempting for thousands of punters and this brings more people to wager, boosting both trading value and volume.
“This capital flow will stay in the stock market for the long-term if clients are professional or can demonstrate an understanding of the risks.
“However, most of the new cash flow poured into the market shows signs of speculation in the short term. Bettors will sell-off anytime they see risks. The stock market has rebounded sharply since April, making the index approach strong resistance zone. Many forecasts say the stock market may shake strongly in the short term as speculative cash flows are gradually withdrawn,” Hoang said.
Nguyen The Minh, Director of Analysis at Yuanta Vietnam Securities, said new cash flow had not shown signs of withdrawing from the market, especially as other investment channels are generally considered more tedious.
“Vietnam gained initial success in containing the COVID-19 pandemic. GDP this year is forecast to maintain positive growth of 4 percent.
“Investors also focus on information about the wave of foreign direct investment inflows into Vietnam, public investment promotion process, opportunities from the newly-ratified Europe-Vietnam Free Trade Agreement, equitisation and divestment of State capital,” Minh said.
Pham Thien Quang, Director of VNDIRECT’s Investment and Asset Management Services, said the surge in newly opened accounts was unprecedented.
“Traders often rush to the market when stock prices rise sharply as a result of a growing economy or large profit margins. This year, the majority joined the market even amidst high risk of recession,” Quang said.
In early May, the VN-Index reached 800 points, a strong resistance zone. But positive market sentiment helped the index maintain uptrend and overcome the thresholds of 830 points, 850 points and most recently 880 points, heading to the next threshold of 900 points.
Experts believe the changes of the index are not as important as betting opportunities for each different stock code. But if the index surpasses important landmarks, market sentiment will be strengthened.
“The earning results of businesses in the second quarter may continue to decline, but economic supportive policies, especially stimulus packages, have helped strengthen investor confidence and support the market.
“Any upside will need a period of correction. Although it has not happened yet investors need to stay calm and limit leverage. Investors should also pay attention to cash flow trends to adjust investment strategy when the situation changes,” Minh said./.
Read original article here
Newer News
15/09 Realty, materials boost VN market
14/09 Varying forecasts for stock market, plenty of opportunities for investors
11/09 Shares struggle as large caps vary
09/09 Local ETFs draw foreign attention
07/09 Profit taking to weigh on local market, but September may be bright
07/09 Stock market makes smart recovery in August [Sửa | Xóa]
03/09 New circular helps perfect financial products and stock market: expert
31/08 Beer industry: market slowly recovers
27/08 Selling pressure weighs down market
27/08 Intraday trading, short selling soon available: draft circular
Older News
08/06 Opportunities still exist but market will struggle to make big advance
08/06 Reforms needed to attract foreign portfolio investment: fund manager
05/06 Securities fuel shares, investors seek profits in large-caps
04/06 Markets rise on the back of large caps, banks
02/06 Stock market may not enjoy lower lending rate impact: analysts
29/05 Local stocks gain slower, as banks and petrochemical firms keep increasing
14/05 VN stocks slide, but market prospects remain positive
07/05 Large-caps maintain uptrend, markets extend gains in the afternoon
05/05 Markets tumble as global sentiment worsens
29/04 Plummeting stock prices raise fears of businesses being acquired
Newsletter Signup
Top Stories
Reference exchange rate down 5 VND on September 15
Construction steel sales projected to recover in year-end months
HVN: Vietnam Airlines increases flights from/to Da Nang
Local ETFs draw foreign attention
Plastics industry shrugs off pandemic, interests stock investors
Market Update
Last updated at 3:10:10 PM
VN-INDEX 912.50 +6.31/+0.70%
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.