According to newly released data from the Securities Depository Center (VSD), the number of new securities accounts opened by domestic individual investors in March 2021 skyrocketed to the highest level in history: 113,191 accounts. .

The record this time far exceeds the previous record, in January, with 86,107 new personal accounts in the country opened.

The number of new accounts opened in March was twice as high as the previous month and also twice the monthly average in 2020. Even though the number of new accounts opened in 2020 is close to 10 years ago combined.

In February, individual investors opened more than 57 thousand securities accounts.

In 2020, the cash flow into the stock market is unprecedented. The number of new securities participants (F0) increased to a record, 1 year equal to all 10 years ago combined. Accordingly, every month, securities companies record about 50,000 new market participants. Total of about 600,000 new accounts for the whole year.

Statistics show that, in 2010, securities companies had about 1.5 million accounts. By the beginning of 2020, the number of accounts will be 2.2 million, which means an increase of 700,000 accounts in 10 years. But in just one year 2020, the number of additional accounts is 600 thousand accounts.

Also in March 2021, VSD recorded the number of accounts opened by foreign individual investors, setting a new record: 502 accounts. Currently, the total number of accounts opened by foreign individual investors in Vietnam's stock market reaches 32,391 accounts.

In the past month, 33 new institutional accounts have been opened, bringing the total number of institutional accounts to 3,983 accounts.

The number of newly opened accounts increased to a record, accompanied by a sharp increase in the stock market to a record high in the early days of April 2021. The VN-Index has far surpassed the peak of 1,200 points recorded in 2018.

Massive cash flow poured into stocks.

Stocks are forecasted to increase in price

Currently, Vietnam's stock market is rated as the most attractive in the world with a P/E ratio of about 18-19 times, lower than Thailand's over 20, Philippines' over 25 and over 35 America times.

But it is worth mentioning that Vietnamese businesses are making an impressive recovery, estimated to grow 20% in profit in 2021. Recently, a series of banks also launched a plan to grow profits at 20% for the year. 2021

With such earnings growth, the overall P/E ratio in the market can be pulled back to about 14 times, much more attractive than the stock valuation of many countries in the context of the economic recovery speed. countries' economies are forecast to be much lower.

In a recent report, SSI Securities Joint Stock Company (SSI) said that Vietnam's stock market is attractive to capital inflows in the long term thanks to its stable business environment, tight money supply control in Vietnam. low inflation pressure.

According to SSI, investment funds started net buying in Vietnam. Besides, there are new funds such as Fubon FTSE Vietnam ETF. This is the latest ETF to enter the Vietnamese market.

According to SSI Research, if the regulators can overcome the system overload on HOSE, VN-Index will gain more momentum towards the target area of ​​1,350-1,400 points.

Vietnam is maintaining a very cautious and stable monetary policy. From the beginning of the year until now, the amount of money injected through the open market and foreign currency channel has been zero. Interest rate level may increase slightly in the second half of 2021 due to more vibrant economic activity, but basically the ground level general interest rates will remain stable.

Meanwhile, Mirae Asset forecasts that with an optimistic macro outlook, the VN-Index may reach 1,400 points. Mirae Asset forecasts that the EPS (earnings per share) growth of companies listed on the HOSE will grow by 20% in 2021, after a slight decline of 0.67% in 2020.

According to Mirae Asset, Vietnam's economic growth has recovered significantly in a V-shaped pattern from the bottom level established in the second quarter of 2020. As a result, Vietnam is among the few economies in the world to achieve positive growth in 2020 (+2.9% YoY). Economic data in the first quarter of 2021 once again proves the internal strength of the Vietnamese economy.

Despite initial concerns about the impact of the third Covid-19 outbreak at the end of January 2021, macroeconomic indicators for the first quarter of 2021 show that the recovery momentum is still maintained, with an increase in GDP. is 4.5%.

M. Ha

Source: Newspapers