Home / Economy / Banking & Finance
Strong liquidity in Vietnam stock markets boosts stock exchanges revenue
Hai Yen 13:37, 2020/09/12
The average liquidity for a trading session in the first half of 2020 rose 24% year-on-year to VND5.8 trillion (US$250 million).

Amid the Covid-19 pandemic that causes severe economic impacts, strong liquidity in Vietnam’s stock market was a key reason leading to a surge in revenue of the country’s two major stock exchanges.

 Two major stock exchanges saw a surge in revenue in the first half of 2020. 

The Hanoi Stock Exchange (HNX) in its financial statement for the second quarter reported a 28% rise year-on-year in revenue to VND336 billion (US$14.48 million), of which the majority came from securities transaction, making up 88% of the total revenue, followed by government bond auctions with 4.8%.

This resulted in the stock exchange’s gross profit of VND289 billion (US$12.46 million), up 31% year-on-year, and a pre-tax profit of VND231 billion (US$10 million), up 8.4%.

Similar to HNX, the Ho Chi Minh City Stock Exchange (HOSE), home to the majority of large-caps, posted revenue of VND382 billion (US$16.46 million), up 17% year-on-year, with securities transaction accounting for 85% of total.

HOSE recorded an increase of 21% year-on-year in gross profit to VND351 billion (US$15.13 million) and a pre-tax profit of VND239 billion (US$10.3 million), up 19%.

Statistics from VNDirect Securities revealed the average liquidity for a trading session in the first half of 2020 rose 24% year-on-year to VND5.8 trillion (US$250 million), thanks to a surge in the amount of capital injected into the stock market.

It is estimated that over 25,000 new securities accounts were registered monthly in the January – June period, an increase of 53% year-on-year.

Vietnam was one of the best performing markets in the world in August as the VN-Index increased by 10.4% month-on-month.

A report from Viet Dragon Securities Company (VDSC) suggested the upward momentum of August and the expectation of new foreign capital could support the benchmark VN-Index to surpass its June peak at 900 points, and possibly reach 920.

TAG: Vietnam stock market HOSE HNX liquidity covid-19 coronavirus nCoV pandemic
Other news
15:40, 2020/40/21
Covid-19 pushes Vietnam fiscal deficit to nearly 6% of GDP
Such a high fiscal deficit is due to low state budget revenue and increase in regular spending under the severe Covid-19 impacts.
10:58, 2020/58/20
Lack of credit culture poses risks to Vietnam bond market: ADB
A credible domestic rating agency is a critical missing jigsaw piece in the orderly development of a healthy sustainable bond market in Vietnam, stated the ADB.
12:32, 2020/32/16
Vietnam finance ministry pushes for speedier privatization of SOEs
Only seven state firms have completed their respective privatization process in the first nine months of 2020.
14:40, 2020/40/15
Vietnam spends over US$752 million on Covid-19 fight
The government has set aside VND12.57 trillion (US$542.2 million) to support 12.65 million people directly hit by the Covid-19 pandemic.
11:39, 2020/39/14
IMF trims Vietnam GDP growth forecast to 1.6% in 2020
The country would remain the only one with positive growth among five major economies in ASEAN, and its economic growth would rebound to 6.7% in 2021.
14:25, 2020/25/13
Stable outlook expected for Vietnamese dong
While Vietnam is at risk of being listed as currency manipulator by the US, such a risk appears low, as the US will likely continue to reduce its dependence on Chinese exports by reorganizing its supply chain with other partners.