HoSE sees big changes in brokerage market share in Q3

October 13, 2022 - 08:09
VPS continues lead the brokerage market with its market share increasing sharply from 17.1 per cent in the second quarter of 2022 to 18.71 per cent in the third quarter, while SSI's market share reduced from 10.02 per cent to 9. 6 per cent.
An investor watching stocks' movements on a big screen inside the building of HoSE. VNA/VNS Photo Hứa Chung

HÀ NỘI — The Hồ Chí Minh Stock Exchange (HOSE) recently announced the market share of brokerage transaction value in the third quarter of 2022. And there are big changes among the top 10.

VPS Securities continues to rank top of the brokerage market share, witnessing a sharp gain from 17.1 per cent in the second quarter of 2022 to 18.71 per cent in the third quarter.

SSI Securities Corporation is lagging behind as its market share keeps falling from 10.02 per cent to 9.60 per cent. However, the securities firm said that it has recently found solutions to retain its market share.

According to SSI, amid the volatile market, the company continues to prioritise risk management for margin lending activities, striving to accompany customers in tough times. As of the end of September, SSI's outstanding loans reached nearly VNĐ15.4 trillion (US$644.2 million).

It also promotes investment consulting programmes to improve efficiency and risk management for investors.

In the first nine months of the year, the number of new accounts opened at SSI went up 34 per cent year-on-year, but the market share declined significantly.

Most of the remaining securities companies posted sharp drops in market share in the last quarter. VNDirect Securities Corporation’s market share plunged from 7.96 per cent in the second quarter to 7.72 per cent in the third quarter.

Hồ Chí Minh Securities Corporation (HSC) dropped from fourth to fifth position, corresponding to a slide from 6.06 per cent to 5.58 per cent in market share. Techcom Securities (TCBS)’s market share decreased from 5.37 per cent to 5.23 per cent.

Mirae Asset Securities Vietnam (MAS) has made considerable efforts to rank fourth with its trading market share increasing from 5.10 per cent to 5.85 per cent.

Securities companies in Việt Nam have grown dramatically in the past three years thanks to the strong participation of retail investors. The long-term prospects of the securities services industry in Việt Nam remain very positive due to economic growth, a low investor participation rate in the total population, and the size of the capital market, which is expected to develop further.

However, according to FiinRatings, currently the average daily liquidity on the domestic stock market is only about 60 per cent of the average in 2021. This will affect the income growth rate of stockbrokers and the credit risk of margin loan portfolios. As a result, it will have a bigger impact on securities companies, which provide margin loans, focusing on small or speculative stocks.

More firms to join HoSE

In the last days of September, HoSE continuously announced it have received the listing documents of another five companies, increasing the number of enterprises waiting for the approval date to be listed on HoSE to 14 units.

Of which, Lập Phương Thành Trading and Production (LPT), Pacific Petroleum Transportation (PVP) and Hòa Thọ Textile & Garment (HTG) are transferring shares from UPCoM to HoSE, while Nova Consumer and Bảo Châu Pharmaceutical Group are new entrants on the stock market.

In the third quarter, the country's stock market tracked the global markets’ slugging trend, with the benchmark VN-Index hitting the lowest since February 2021. The downtrend occurred despite the bright prospect of the country’s economy. After a long streak of recovery in July and August, the index fell again at the beginning of September.

It closed the last trading day of September at 1,132 points, down 11.6 per cent month-on-month and 24.4 per cent over last year. VNS