Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - The steep decline of the local stock market as thecoronavirus ravaged economies lured many new punters to the market.
Retail brokers have reported a jump in new clients opening financial markettrading accounts, with more than 100,000 accounts registered in the past threemonths.
Of the new 100,000 accounts, 31,900 were opened in March and 36,700 were openedin 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 Mayand 15,000 accounts in April.
Besides the new investors, there has been a considerable amount of money comingfrom 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 marketplunge inflicted by damage caused by the coronavirus crisis,” Hoang said.
“They have accumulated beaten-down stocks in the recent massive sell-offsduring the peak of the COVID-19 pandemic.
“The steep fall of the stock market in March attracted investors as 60 percentof stocks on the market had market prices lower than their book values.
“Shares are proving too tempting for thousands of punters and this brings morepeople to wager, boosting both trading value and volume.
“This capital flow will stay in the stock market for the long-term if clientsare professional or can demonstrate an understanding of the risks.
“However, most of the new cash flow poured into the market shows signs ofspeculation in the short term. Bettors will sell-off anytime they see risks.The stock market has rebounded sharply since April, making the index approachstrong resistance zone. Many forecasts say the stock market may shake stronglyin the short term as speculative cash flows are gradually withdrawn,” Hoang said.
Nguyen The Minh, Director of Analysis at Yuanta Vietnam Securities, said newcash flow had not shown signs of withdrawing from the market, especially asother investment channels are generally considered more tedious.
“Vietnam gained initial success in containing the COVID-19 pandemic. GDP thisyear is forecast to maintain positive growth of 4 percent.
“Investors also focus on information about the wave of foreign directinvestment 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 ManagementServices, said the surge in newly opened accounts was unprecedented.
“Traders often rush to the market when stock prices rise sharply as a result ofa growing economy or large profit margins. This year, the majority joined themarket even amidst high risk of recession,” Quang said.
In early May, the VN-Index reached 800 points, a strong resistance zone. Butpositive market sentiment helped the index maintain uptrend and overcome thethresholds of 830 points, 850 points and most recently 880 points, heading tothe next threshold of 900 points.
Experts believe the changes of the index are not as important as bettingopportunities for each different stock code. But if the index surpassesimportant landmarks, market sentiment will be strengthened.
“The earning results of businesses in the second quarter may continue todecline, but economic supportive policies, especially stimulus packages, havehelped strengthen investor confidence and support the market.
“Any upside will need a period of correction. Although it has not happened yetinvestors need to stay calm and limit leverage. Investors should also payattention to cash flow trends to adjust investment strategy when the situationchanges,” Minh said./.
Retail brokers have reported a jump in new clients opening financial markettrading accounts, with more than 100,000 accounts registered in the past threemonths.
Of the new 100,000 accounts, 31,900 were opened in March and 36,700 were openedin 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 Mayand 15,000 accounts in April.
Besides the new investors, there has been a considerable amount of money comingfrom 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 marketplunge inflicted by damage caused by the coronavirus crisis,” Hoang said.
“They have accumulated beaten-down stocks in the recent massive sell-offsduring the peak of the COVID-19 pandemic.
“The steep fall of the stock market in March attracted investors as 60 percentof stocks on the market had market prices lower than their book values.
“Shares are proving too tempting for thousands of punters and this brings morepeople to wager, boosting both trading value and volume.
“This capital flow will stay in the stock market for the long-term if clientsare professional or can demonstrate an understanding of the risks.
“However, most of the new cash flow poured into the market shows signs ofspeculation in the short term. Bettors will sell-off anytime they see risks.The stock market has rebounded sharply since April, making the index approachstrong resistance zone. Many forecasts say the stock market may shake stronglyin the short term as speculative cash flows are gradually withdrawn,” Hoang said.
Nguyen The Minh, Director of Analysis at Yuanta Vietnam Securities, said newcash flow had not shown signs of withdrawing from the market, especially asother investment channels are generally considered more tedious.
“Vietnam gained initial success in containing the COVID-19 pandemic. GDP thisyear is forecast to maintain positive growth of 4 percent.
“Investors also focus on information about the wave of foreign directinvestment 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 ManagementServices, said the surge in newly opened accounts was unprecedented.
“Traders often rush to the market when stock prices rise sharply as a result ofa growing economy or large profit margins. This year, the majority joined themarket even amidst high risk of recession,” Quang said.
In early May, the VN-Index reached 800 points, a strong resistance zone. Butpositive market sentiment helped the index maintain uptrend and overcome thethresholds of 830 points, 850 points and most recently 880 points, heading tothe next threshold of 900 points.
Experts believe the changes of the index are not as important as bettingopportunities for each different stock code. But if the index surpassesimportant landmarks, market sentiment will be strengthened.
“The earning results of businesses in the second quarter may continue todecline, but economic supportive policies, especially stimulus packages, havehelped strengthen investor confidence and support the market.
“Any upside will need a period of correction. Although it has not happened yetinvestors need to stay calm and limit leverage. Investors should also payattention to cash flow trends to adjust investment strategy when the situationchanges,” Minh said./.
VNA
