Investors seen at a brokerage in District 1, Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
Stock brokerages noticed their Q1 put up-tax profits skyrocket because the market recovered from final yr’s low with a wave of recent traders.
Leading brokerage SSI Securities Corporation noticed its revenue enhance 28 occasions yr-on-yr to VND426.9 billion ($18.5 million). Its revenues rose 57 p.c to VND1.47 trillion ($63.8 million).
VNDirect recorded an eight-fold leap in its revenue to VND482.5 billion, with income doubling to VND1.06 trillion.
Meanwhile, VPS Securities noticed its revenue and income double to VND202 billion and VND1.99 trillion, respectively.
Viet Capital Securities noticed revenue rise 2.5 occasions to VND292 billion, whereas income doubled to VND782 billion.
Nguyen The Minh, head of retail analysis at brokerage Yuanta Vietnam, instructed VnExpress International that the inventory market growth has helped brokerages revenue handsomely from their investments.
By the tip of March, the benchmark VN-Index had risen 80 p.c from the identical interval final yr when the market hit its backside with traders fearing the primary Covid-19 outbreak might harm the financial system badly.
As the market began to get better all year long and approached its earlier historic peak of 2018, a wave of recent traders began pouring cash into shares, searching for earnings from this asset class as financial institution deposit rates of interest fell.
Nearly 113,900 new trading accounts had been opened final month, the very best month-to-month determine ever, breaking the earlier document in January, bringing the whole variety of accounts to almost 3.02 million.
Minh mentioned that the surging variety of new traders additionally elevated revenues and profits of brokerages, and extra traders had been set to enter the market within the remaining months of the yr as shares remained one of the crucial enticing funding choices.
“After surpassing the historic 1,200 stage, VN-Index will possible hit 1,300 factors this yr, and that may draw many traders to the market whereas retaining current ones who don’t wish to deposit their cash in banks with low rates of interest,” he added.