Illustrative image (Photo: VNA) This was the lowest number of new accounts opened by domesticinvestors since February 2021 and marked the fifth consecutive month ofdecline.
Specifically, retail investors opened 96,290 new accounts, whileinstitutional investors opened 137.
Over the first nine months of the year, domestic retail investorsopened 2.4 million new accounts, far exceeding the combined figure of 2018,2019, 2020 and 2021.
As of the end of September, retail investor accounts exceeded 6.65million, or about 6.6% of the population.
The number of new accounts opened by domestic investorscontinuously declined sharply, which also partly affected the stock market'sliquidity recently.
According to statistics, last month, the average matching value onthe Ho Chi Minh Stock Exchange (HoSE) was only 9.3 trillion VND (374 million USD),a 21% decrease compared to the previous month and the lowest level since thebeginning of 2021. Moreover, many trading sessions' matching values didn'treach 7 trillion VND.
The move to hike interest rates by the US Federal Reserve (Fed)and the global central banks left a huge impact on the cash flow in the globalfinancial market.
Furthermore, under the exchange rate pressure due to theescalating US dollar, the State Bank of Vietnam (SBV) also raised the operatinginterest rate by 1% per year for the second time within a month. In addition,businesses' bond repurchasing before maturity also partly affects cash flowinto securities.
The aggressive tightening policy of the Fed has also created awave of capital withdrawal globally, and Vietnam is no exception. Statisticsshow foreign investors net sold nearly 1.6 trillion VND on HoSE in October.This is the second straight month that foreign investors have sold strongly.Last month's figure was more than 3 trillion VND.
Last month, foreign investors opened 174 new accounts, of which162 new accounts were opened by retail and 12 new accounts by organisationinvestors. The numbers were much more positive than foreign retail investorsclosing 63 accounts in September.
As of the end of October, foreign investors had a total of 42,242accounts.
SSC fines hundreds of cases
Regarding the supervision and handling of violations in the stockmarket, the State Securities Commission (SSC) issued 51 sanctioning decisionswith a total fine of 3.3 billion VND last month.
For the year, SSC has issued 401 sanctioning decisions with atotal fine of more than 30 billion VND.
Previously, at the Government press conference on October 29,Deputy Minister of Finance Nguyen Duc Chi said that the macro balances of theVietnamese economy remain stable, which is the basis for stabilising the stockmarket.
The Vietnamese stock market witnessed a downward correction.
Chi said that international and domestic factors such as risingglobal inflation, the world economy and the changes in the monetary policy ofmajor economies, the ongoing Russia-Ukraine conflict, and changes in domesticmonetary policies are attributed to the bearish trend.
A press release recently released by the Ministry of Finance saidthat on October 31, the VN-Index fell 9.2% on-month to 1,027.94 points. TheHNX-Index on the Hanoi Stock Exchange (HNX) closed last month at 214.31 points,down 14.4% over the previous month.
As of October 27, the market capitalisation of the three stockexchanges HOSE, HNX and UPCoM were estimated at 5.34 quadrillion VND, down 31%compared to the end of 2021, and equivalent to 63.6% of GDP./.
VNA
