Illustrative image (Photo: VNA) Hanoi (VNA) – The number of newly-openedsecurities accounts in March plunged to the lowest in the past two years, markingthe sixth consecutive month the market did not record more than 100,000 newaccounts, according to the Vietnam Securities Depository (VSD).
Comparedto the peak liquidity period, the number of new accounts fluctuated between 200,000-450,000.
Despite the slowdown in new account openings, the Vietnamesestock market still shows great potential with over 7 million accounts,equivalent to about 7% of the population. Of this, 40,000 wereregistered by domestic and foreign investors.
The figure exceeds the target of having 5% ofthe population invest in the stock market by 2025 as outlined in the securitiesand insurance market restructuring plan. However, thereare cases that one person has multiple accounts while new accounts do notrecord any transactions.
Accordingto the SSI Securities JSC, the Vietnamese stock market is showing a fairlystrong foundation as it rebounded by 3.9% in March and ended the first quarter witha growth of 5.7% on the VN-Index.
Thispositive trend is led by measures to address economic difficulties andfinancial market challenges, as well as positive news from foreign investors'cash flows.
The market also welcomed two interest rate cuts by the StateBank of Vietnam in mid and late March, which sent a strong message about theneed to reduce interest rates to support economic growth. These are seen ashighly flexible steps by the Government, given the macroeconomic challenges in thefirst quarter.
According to the SSI, the profits of several listed companies maystill not enough to help them escape the trend of decline compared to the same period last year. Itwill be a factor that prevents VN-Index from making strong breakthroughs in theshort term./.
