VCN - The fluctuation of the securities market is becoming an attractive investment channel for new investors. Therefore, securities companies are also introducing attractive policies to attract investors.
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Number of new accounts witnesses a record increase
According to the latest data from the Vietnam Securities Depository (VSD), as of the beginning of June 2020, the total number of domestic securities accounts hit 2.4 million. Along with that the number of foreign securities accounts also reached more than 33,200.
Notably, the statistics of the VSD said that nearly 100,000 new accounts were opened in only three months (March, April and May). Of which, March had 31,949 accounts and April 36,721 accounts. This is a record increase in recent years, equivalent to the number of new accounts opened in seven months of 2019.
In terms of the derivatives market, the number of trading accounts also continued to increase. At the end of May 2020, the number of derivative trading accounts reached 118,126, a month-on-month increase of 6.94%.
Many experts said that after the pandemic, the number of individual investors opening new accounts saw an explosion. It was the bottom-fishing cash flow from F0 investors that helped the market balance against the net selling pressure from foreign investors due to the impact of the Covid-19 pandemic. Specifically, from March to the end of May, foreign investors continued net selling over VND14,000 billion on HOSE, but the VN-Index reversed from the bottom of 650 points at the end of March to nearly 900 points at the beginning of June.
According to the analysis of SSI Securities Company, the F0 investors participating in the securities market today may be: owners of enterprises or business establishments engaged in production and business activities that were frozen due to the pandemic and want to use "stagnant" cash flow for reinvestment; or real estate investors turning to securities investment. The young, knowledgeable, experienced and tech-savvy investors are the main force which brings "new wind" to the market.
According to Mr. Doan Duy Tu, a securities broker at VNDirect Securities Joint Stock Company, young investors start with insignificant capital which maybe a few hundred million to experience fluctuations of securities. But the investment is profitable and they will increase their capital a lot, which proves that the current amount of idle money is huge and when interest rates for bank deposits decline, securities are becoming more and more attractive.
Many attractive preferential policies
Catching this trend, many securities companies have quickly offered margin interest incentive programs to support investors, especially new investors.
Maybank Kim Eng Securities (MBKE) is one of the companies offering many incentives for customers who have been trading here. Accordingly, the special margininterest rate is only 8.99% per year until the end of December 31, 2020 (applied to new customers and customers stopping trading at least six months). At the same time, derivative transactions are free till the end of July 31, 2020. Special preferential interest rate for existing customers is a reduction of up to 2% per year compared to the current interest rate on additional outstanding loans. Accordingly, the lowest interest rate is 8.9% per year (until August 31, 2020).
Similarly, at Vietcombank Securities Company, from June 1 to August 31, 2020, the company launched a preferential program of reducing the margin lending rate for all customers opening new securities trading accounts on its entire system. Specifically, the margin lending rate is 9.5% per year.
Yuanta Vietnam Securities Company also offers a preferential trading fee of 0.099% applied to all customers opening new accounts on the online account opening system from now until December 31, 2020.
In addition, Yuanta Vietnam also offers a preferential program of margin interest rate of 8.8% per year, the limit of VND10 billion, applied to new disbursements from now until July 5 and new customers opening accounts during this time. After that, customers can switch to YS9.0 product with a margin interest rate of 9% per year.
In the group of Korean securities companies, KIS Vietnam Securities also implements the preferential policy of 8.9% margin interest rate within three months. KB Vietnam Securities offers a policy of free trading fees and margin interest rate of 9.5%.
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Facing the above situation, many experts recommend that the use of margin helps investors increase opportunities to seek profits, but also comes with risks, especially in the context of unpredictable market movements. Therefore, investors should be careful and consider many aspects when deciding to use margin. The stock market going against the economy for a long time and developing at the current high speed is hiding remarkable risks for short-term investors.
By Bao Minh/ Huyen Trang