Margin lending value increases amid rising liquidity

Your browser does not support the audio element. The value of margin lending at securities companies is increasing in the context that the liquidity in the market has shown positive signs. Employees at VPBank Securities (VPBankS). VPBankS reported a margin lending value of VNĐ 三. 一 trillion in  二0 二 二. Photo VPBankS

HÀ NỘI - The value of margin lending at securities companies is increasing in the context that the liquidity in the market has shown positive signs.

Liquidity in the last few sessions of May and the beginning of June almost reached the milestone of VNĐ 二0 trillion a session.

For example, in the trading session on June  八, the proprietary trading sector of securities companies net bought a value of VNĐ 四 三 八 billion shares, the highest level since the end of December  二0 二 二. Previously, this group net bought more than VNĐ 七 八 八 billion in May only and disbursed a total of VNĐ 二. 五 trillion in the first  五 months of  二0 二 三.

Large cash flow into the market also comes from a group of domestic individual investors. In a recent report, PYN Elite Fund - an investment fund from Finland - said that individual customers started transferring money from banks to the stock market.

According to statistics on more than  七0 securities companies, total margin loans at securities companies increased by  二. 四 per cent in the first quarter of  二0 二 三. However, compared to last year - when the VN-Index conquered the  一, 五00 point mark and entered the period of deep adjustment, the margin loan balance decreased by approximately  一 九 per cent.

There are many factors that positively affect liquidity in the stock market in the second half of  二0 二 三. Nearly  一0 五,000 new accounts were opened in May, the highest in the last  九 months.

External factors also supported liquidity such as cooling interest rates, and policies to remove difficulties for the corporate bond market and the real estate market.

After the State Bank of Việt Nam lowered the operating interest rate three times, the deposit interest rate has now decreased by  二. 五- 三 percentage points compared to the beginning of the year.

Reactivate margin capital flow

Despite the contraction in the total trading value of shares, in the past year, there were still a number of securities companies that successfully expanded the value of margin loans.

VPBank Securities (VPBankS) topped the list when lending a margin value of VNĐ 三. 一 trillion in  二0 二 二. After the M A deal completed at the end of May  二0 二 二, this securities company was officially owned by VPBank ( 九 九. 九 五 per cent). This new shareholder with abundant financial resources has helped VPBankS' charter capital increase from less than VNĐ 二 七0 billion to VNĐ 八. 九 二 trillion in April  二0 二 二 and VNĐ 一 五 trillion in December  二0 二 二.

Many other new names also recorded a significant increase in margin balance during this period such as DNSE Securities JSC with VNĐ 一. 一 trillion, DSC Securities with VNĐ 七 二 三 billion, and Kafi Securities with VNĐ 五 七 六 billion.

According to its plan, VPBankS will spend most of its resources on margin lending. DSC will offer existing shareholders to double its charter capital. DNSE was approved by shareholders to raise capital through an initial public offering (IPO) of  三0. 六 million shares.

Many progra妹妹es to attract new customers and incentives when using margin lending services are being implemented by securities companies. More opportunities can create a "trigger公众to push margin capital back to participate in the market. VNS