Issuing Circular 68, removing "Non pre-funding" obstacles
On September 18, 2024, the Ministry of Finance officially issued Circular No. 68/2024/TT-BTC amending and supplementing a number of articles of the Circulars regulating securities transactions on the securities trading system; clearing and settlement of securities transactions; operations of securities companies and information disclosure on the securities market, effective from November 2, 2024.
The newly issued circular has many notable points, in which the important content is to remove the mandatory margin requirement for foreign investors. Foreign institutional investors can trade to buy stocks without requiring sufficient funds when placing orders (Non Pre-funding).
The race to increase capital in the securities industry is heating up.
In 2024, securities companies massively increased capital, the charter capital of some big companies increased to over 20,000 billion VND with close pursuit among enterprises holding large market shares.
Last November, TCBS Securities increased its charter capital from nearly VND2,200 billion to over VND19,600 billion, then continued to increase to nearly VND21,000 billion. Also in November, SSI completed increasing its charter capital from VND15,011 billion to VND19,639 billion.
Previously, VNDirect successfully increased its charter capital from VND12,178 billion to VND15,223 billion. The company plans to continue increasing its capital to VND18,359 billion. A series of other enterprises such as SHS Securities, VIX Securities, LPBank Securities, etc. also increased their charter capital sharply last year.
Through the amended Securities Law
At the 8th Session, the 15th National Assembly passed the Law amending and supplementing a number of articles of the Securities Law (Law). The Law was amended to enhance transparency and efficiency in securities issuance and offering activities. In particular, a number of provisions were amended and supplemented, such as regulations on professional securities investors; public securities offerings; private securities offerings; and public companies.
The amended Securities Law is assessed to have introduced many important innovations to solve problems of the Vietnamese stock market, while creating momentum for sustainable development in the new period.
VN-Index repeatedly failed to conquer the 1,300 peak
Since the beginning of 2024, the domestic stock market has been fluctuating within a narrow range, with the VN-Index always fluctuating within the 1,165 - 1,300 point range and the current support zone being 1,265 - 1,300 points. The VN-Index has approached the 1,300 point mark many times but still encountered obstacles, preventing the index from breaking through this barrier in 2024.
According to statistics up to December 12, the VN-Index has increased to 1,300 points (+/-10 points) 6 times, but each time it could not maintain and turned down. Strong supply combined with weak cash flow has caused the VN-Index to challenge many times but could not maintain and surpass this threshold.
Technology and logistics stocks soar
Since the beginning of 2024, technology stocks have risen to stardom in the stock market, continuously reaching new heights. Most codes have recorded impressive increases, attracting strong attention from investors.
In particular, the market price of FPT shares of FPT Corporation (HOSE) increased sharply from VND 95,900/share from the first trading session of the year (January 2, 2024) to VND 150,200/share at the closing time of December 12, 2024, an increase of 84%.
The technology wave also spread to CMG shares of CMC Technology Group Corporation. This code also increased sharply from VND 44,100/share on January 2, 2024 to VND 55,700/share at the closing time of December 12, 2024, an increase of 26%.
Along with technology, logistics stocks also made big waves. The focus is on VTP stock of Viettel Post Joint Stock Corporation (HOSE), which has increased by 65% from the time of listing on HOSE on March 12, 2024 to the closing session on December 12, 2024, reaching a market price of VND 136,000/share. Other codes such as HAH of Hai An Transport and Stevedoring Joint Stock Company, PVP of Pacific Petroleum Transportation Joint Stock Company (HOSE), ... also grew impressively.
Corporate bonds grow impressively, banking group "leads the wave"
It has been noted that since the beginning of the year, the corporate bond market has had positive changes with impressive growth in issuance volume, in which the banking group is the main "player" with "overwhelming" issuance value.
According to a report by VnDirect Securities, in the first 11 months of 2024, the total value of issued individual corporate bonds reached more than 349.3 trillion VND, an increase of 48% over the same period.
A recent report by VIS Rating shows that the banking group dominates bond issuance. In the secondary market, the average transaction value reaches VND5,200 billion/day. Banking and Real Estate bonds account for 70% of the transaction volume.
Foreign investors sell at record level, hindering market growth
Since the beginning of the year, foreign investors have continued to be strong net sellers with a total net selling volume of about VND85,000 billion as of November 2024 - a record number in more than 24 years of operation. In November alone, they sold a net of VND12,000 billion, and foreign investors have only temporarily stopped selling in January 2024 during the past 11 months.
This development shows that the new regulations and information affecting the market are still not strong enough to bring domestic cash flow back into balance and prevent foreign cash from being withdrawn. The stock market still lacks a large enough driving force and a group of stocks that are strong enough to attract cash flow into the market.
Exchange rate fluctuations create great pressure
Since the beginning of 2024, the USD exchange rate has fluctuated strongly. The greenback price when converted to VND increased sharply in the second quarter and peaked at the end of June, up more than 4% compared to the beginning of the year, then turned to decrease, and by the beginning of November, the exchange rate skyrocketed again. According to KIM's report, the exchange rate increased sharply due to the impact of Mr. Donald Trump's new policy, causing the USD to strengthen, putting great pressure on VND.
The US dollar has affected the performance of foreign funds, limiting their ability to attract capital. Notably, this trend is forecast by many organizations to continue in the coming time.
Donald Trump's re-election and opportunities for Vietnamese stocks
In the election on November 5, Mr. Donald Trump officially re-established the position of President in a new term. Vietnam can increase its export market share to the US, thanks to the advantage of the products that the US has imposed tariffs on China. In addition, the Industrial Park Real Estate sector can benefit, increasing sharply with FDI capital flows.
Trillions of capitalization evaporated due to false rumors
In the stock market, investors are easily influenced by rumors. In 2024, some businesses lost trillions of capitalization after rumors on social networks.
Typically, at GELEX Group Corporation (HOSE: GEX), the capitalization of this enterprise "evaporated" 2,600 billion after social networks spread an image with the content "Urgent petition and reflection on serious risks leading to unsafe operations and the risk of collapse of the Eximbank system". Not only GEX, Eximbank's EIB shares were also sold off strongly after the above rumor.
Similarly, TCH shares of Hoang Huy Financial Services Investment JSC were also sold off, with capitalization "evaporating" by about VND 1,000 billion after rumors in groups about the company being investigated by the Securities Commission for transactions in the period 2021-2022.
