New trading accounts do a triple jump in April
New trading accounts do a triple jump in April
The number of new securities trading accounts opened by domestic individual investors in April was three times that of the same month last year, at close to 110,000.
An investor studies stock prices at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
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However, the figure was 2.6 percent lower than the number of new accounts opened in March, which was a historic monthly record, according to the Vietnam Securities Depository (VSD).
April is the second month in a row that Vietnam has seen more than 100,000 new trading accounts.
The total number of stock trading accounts was more than 3.1 million at the end of April. Apart from 11,700 accounts of domestic organizations, the rest were of individual investors.
The participation of new investors has made the average trading value in April rise 17 percent month-on-month to VND22.5 trillion ($978.2 million).
The surge in trading value has also been attributed to efforts of the Ho Chi Minh Stock Exchange (HoSE) to improve the technical capabilities of its system.
The system has been operating smoothly since April 12 with liquidity of some sessions reaching VND20 trillion, compared to VND14-15 trillion at the beginning of this year when the system was overloaded.
A recent HSBC report says the average daily securities trading value of Vietnam’s stock market is nearly equivalent to that of Singapore and far exceeds those of Malaysia and Indonesia due to the increase in new investors and recovery of the economy.
Though foreign investors have been pulling out of the stock market, the HSBC report said they would not be able to ignore Vietnam for much longer since it has proved to be one of the most resilient growth economies and 24 of the 30 blue chips have still not reached the foreign investment cap.
