Differentiation among securities companies
The Vietnamese stock market performed poorly as the VN-Index continued to decline in January 2025. Cautious sentiment prevailed amid high exchange rate pressure and capital costs. Meanwhile, the group of securities stocks - considered the "barometer" of the market (an indicator reflecting the general trend) - showed strong differentiation, especially between large and small securities companies.
Large securities companies such as SSI Securities Corporation (HOSE: SSI), VNDirect Securities Corporation (HOSE: VND), Ho Chi Minh City Securities Corporation (HSC Securities, HOSE: HCM) are leading enterprises in the industry with advantages in capital scale, leading brokerage market share and diverse service ecosystem, considered safe choices.
Meanwhile, smaller companies such as FPT Securities Joint Stock Company (HOSE: FTS), Bao Viet Securities Joint Stock Company (HNX: BVS), or Vietnam Joint Stock Commercial Bank for Industry and Trade Securities Joint Stock Company (VietinBank Securities, HOSE: CTS) face many challenges in terms of scale and competitiveness. These companies often have lower brokerage market share and limited capital, making it difficult for them to provide services such as margin trading at attractive rates like larger companies.
However, small companies are not completely outdone. Typically, FTS has made good use of the technology ecosystem of its parent corporation FPT to improve its trading platform, helping to attract young investors and small and medium-sized enterprises. Meanwhile, BVS uses its advantage from Bao Viet Group to promote insurance-linked financial products...
What opportunities are there for retail investors?
The differentiation between securities companies not only creates a difference in business efficiency but also opens up potential investment opportunities for small investors. Large companies with strong capital scale and clear development strategies are still safe choices, especially when the market is still full of potential fluctuations. On the contrary, small companies, although facing greater risks, have the ability to bring high profitability if they know how to take advantage of the right time. In particular, small companies that are actively innovating such as FTS or CTS are assessed to have growth potential thanks to focusing on niche market segments.
According to analysts from Dragon Capital Securities (VDSC), investors should consider stocks with advantages in exploiting institutional clients to attract foreign capital flows, possessing strong resources and attractive valuations, such as VCI and HCM. For stocks with attractive valuations such as SSI, VND, or mid-sized stocks with relatively high valuations such as FTS, BSI, MBS, in the context of the market waiting to be upgraded. Investors should prioritize disbursement during adjustment periods to optimize investment returns.
Meanwhile, Mr. Dao Hong Duong - Director of Industry and Stock Analysis at VPBank Securities JSC (VPBankS) - the profits of securities companies in 2025 will be strongly boosted by brokerage fees, stock trading and services such as investment banking (IB), underwriting... if the market recovers.
Currently, the profit component has become more diversified, including margin lending, dividends and interest from financial assets. The margin market, despite fluctuations, is forecast to stabilize at a scale of over VND200,000 billion in 2025, becoming the main driving force for securities companies to maintain growth.
Large retail brokerage market share players such as VPSS, VND, HCM, MBS are often subject to higher volatility due to their dependence on market margin demand. Meanwhile, large companies with parent bank backing such as TCBS, SSI, despite reaching the legal limit on margin, still maintain a stable position thanks to their large scale and resources.
