The number of newly opened accounts has reached a record high at a time when the stock market has fallen sharply.
According to the Vietnam Securities Depository Center (VSD), over 32,000 new accounts were opened in March alone. Most of them are transaction accounts of domestic investors. This is the sharpest increase in number of newly opened accounts in the last two years.
The Vietnamese stock market had witnessed trading sessions with the sharpest index decreases in that month.
With fears about the epidemic, investors rushed to bargain stocks away, causing
the VN Index to fall continuously for consecutive trading sessions.
In March alone, the VN Index dropped by 220 points with more than 90 percent of shares in the market sliding in prices. For the first time since 2018, the VN Index hovered around 660 points.
When the VN Index plummeted, the market saw the sharpest increase in number of investors joining the stock market.
|When the VN Index plummeted, the market saw the sharpest increase in number of investors joining the stock market.|
Nguyen Kim Chi, director of the Pham Ngoc Thach Branch of KIS Vietnam, confirmed that the number of new accounts has increased significantly in recent days.
He said many new investors have joined the market and many old investors who left the market for many years are coming back.
According to Chi, the increase in number of accounts show investors’ attempt for bottom fishing.
As traffic surged, systems became overloaded. Techcom Securities (TCBS) has sent an email to its clients apologizing for the quality of the transmission lines that affected securities transactions.
The company said the number of users had increased recently, leaving many customers with bad experiences with TCInvest. The company fixed the problem and improved the system to ensure smooth operation again.
VnDirect Securities also had to explain technical problems with online transactions on April 6-7. During the two trading sessions, some investors could not access the software for online transactions.
According to VnDirect, the company's user authentication system might be overloaded locally.
Bao Viet Securities (BVSC) said the recovery of the VN Index continues and the index is coming closer to the 780-820 point threshold in the short term.
However, many shares have gained impressive recoveries and they are approaching strong resistance areas. Therefore, the index may bear profit-taking pressure and see corrections in the next trading sessions.
The strong and prolonged net sale by foreign investors remain a negative feature. Thr market will also be affected by the Q1 business results of listed companies and the macroeconomic indexes, to be made public in April.
BVSC thinks listed companies’ business results in Q1 may be below expectations because of Covid-19.
The stock market fell sharply in March, with all indices dropping steeply, according to the Ho Chi Minh Stock Exchange.
The Ministry of Finance has cut the fees of nine securities services and exempted fees for six others as from March 19 as part of efforts to support the stock market amid the negative impact of the COVID-19 epidemic.