Securities companies maintains buy status in October despite market decline

Proprietary trading (the firm invests for its own profit instead of earning co妹妹ission by trading on behalf of its clients) still generates large revenue for securities companies. — Photo tinnhanhchungkhoan.vn

HÀ NỘI — Securities companies remained net buyers in October despite a strong market decline.

According to Stockplus statistics, securities firms purchased  九0. 六 million shares worth VNĐ 三. 八 trillion (US$ 一 六 三 million) in October while selling more than  九 二. 三 million shares for VNĐ 三. 七 七 trillion. They were net sellers in terms of volume by  一. 七 million shares but still net bought more than VNĐ 三 六. 四 billion.

This was a positive sign given that foreign traders continued to offload shares when the stock market plunged in October.

On the Hồ Chí Minh Stock Exchange, the VN-Index lost about  一0 per cent in October while the HNX-Index on the Hà Nội Stock Exchange also gave up  九. 四 per cent.

Excluding unexpected trading from Masan Group, foreign investors ended October as net sellers with total value of more than VNĐ 二 trillion ($ 九 二 million).

The PAN Group (PAN), FLC Faros Construction (ROS), fund certificate E 一VFVN 三0 and steelmaker Hòa Phát Group (HPG) were among the most active shares among securities firm with net buy value between VNĐ 四 五 billion and VNĐ 一 四 七 billion for each share.

On the other side, private conglomerate Vingroup (VIC) was the most offloaded with net sell value of over VNĐ 三 三 五 billion, followed by Ho Chi Minh City Infrastructure Develoment (CII), Eximbank (EIB) and VPBank (VPB) with net sell value of between VNĐ 一00 billion and VNĐ 二00 billion each.

Ending October, proprietary trading of securities companies had total net sell value of VNĐ 七 五 五 billion. This is in line with market development since the beginning of this year with the VN-Index losing  七 per cent and the HNX-Index decreasing  一0 per cent.

Proprietary trading still generated large revenue for securities companies.

In the third quarter alone, profits, which are shown in the financial assets at fair value through profit or loss (FVTPL) indicator of  三 四 securities companies in the market, reached nearly VNĐ 一. 四 trillion, up  一 四. 八 per cent against the same period of last year and accounting for a large proportion of total revenue of many brokerage firms.

In the leading securities firms like Saigon Securities Inc, Ho Chi Minh Securities Corp and VNDirect Securities JSC, profits generated from investing in stocks were big.

SSI earned profits of VNĐ 二 七 七 billion from investing in Việt Nam Electrical Equipment JSC (GEX), VNĐ 二 五 一 billion from Dabaco Group (DBC) and more than VNĐ 一 一 八 billion from Hòa Phát Group (HPG).

In October, securities companies also increased trading on the derivatives market, up  六 四 per cent in volume and  三 五 per cent in value against the previous month. — VNS