New securities trading accounts hit record high

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A new investor (L) speaks to staff at a brokerage in District 1, Ho Chi Minh City, January 13, 2021. Photo by VnExpress/Quynh Tran.

The number of investors entering the exchange continues to climb with 113,875 new trading accounts opened in March, the highest monthly figure on record.

The figure broke the record of 86,017 set in January, according to the Vietnam Securities Depository (VSD).

The stock market saw nearly 258,000 new trading accounts opened in the first quarter, which is 65% of the figure recorded in 2020 as a whole. This brought the total number of accounts to nearly 3.02 million last month, or 2.8% of Vietnam’s population.

The SSI Securities Corporation said the Vietnamese stock market had a special quarter, hitting the 1,200 mark three times.

The market had suffered its biggest decline in history on January 28 following panic selling after new community transmissions of Covid-19 were reported. The benchmark VN index on the Ho Chi Minh Stock Exchange (HoSE) fell 73.23 points, or 6.67%, to close at 1,023.94 points.

However, the market quickly recovered to 1,191.44 points at the end of March 31, up 7.93% since the start of the year.

With most banks capping interest rates on deposits at around 5.6%, down from 7% at the start of 2020, investors have turned to securities as a better income-generating alternative.

With the boom in the stock market, individual investors are flocking to open trading accounts, many without any prior experience.

The government aims for 3% of the population to participate in stock markets by the end of this year and 5% by 2025 as part of its program to restructure the securities and insurance markets, which it finalized in early 2019.

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