New system to extend Vietnam’s brokerage stocks rally

18 Mar 2024

The current rally in Vietnam’s brokerage stocks will likely continue as the introduction of a new system boosts trading capacity, and low borrowing costs drive a rise in retail investing.

The country is planning to launch a platform that has the ability to manage between three and five million orders each day, compared to the current capacity of around one million, with the aim of making settlement more streamlined.

Meanwhile, Vietnam’s central bank has carried out four rounds of policy easing, which has helped to fuel an economic rebound and attract more individual investors, Bloomberg reports.

“Broker shares are directly benefiting from booming liquidity,” according to Tran Hoang Son, head of market strategy at VPBank Securities. 

He went on to add that securities stocks are poised to benefit from the system upgrade, along with the anticipation that Vietnam will secure an upgrade from FTSE Russell to emerging-market status later this year.

So far this year, a measure of 14 securities firm stocks compiled by Bloomberg has soared 24%, twice the growth in the benchmark VN Index. The two best performers are Tri Viet Securities with a 47% gain and FPT Securities JSC with 43% growth.

The liquidity boost and surge in retail trading have also had a positive impact on the overall market, with the VN Index emerging as the top performer among benchmarks in Southeast Asia this year.

On March 8, the daily trading value of Vietnamese stocks reached an almost seven-month peak, coinciding with a notable increase in new brokerage account openings. Last month, the number of new brokerage accounts surged to 113,300, signalling an 80% rise compared to the same time last year.