Investors seen at a brokerage in District 1, Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
Stock brokerages saw their Q1 post-tax profits skyrocket as the market recovered from last year’s low with a wave of new investors.
Leading brokerage SSI Securities Corporation saw its profit increase 28 times year-on-year to VND426.9 billion ($18.5 million). Its revenues rose 57 percent to VND1.47 trillion ($63.8 million).
VNDirect recorded an eight-fold jump in its profit to VND482.5 billion, with revenue doubling to VND1.06 trillion.
Meanwhile, VPS Securities saw its profit and revenue double to VND202 billion and VND1.99 trillion, respectively.
Viet Capital Securities saw profit rise 2.5 times to VND292 billion, while revenue doubled to VND782 billion.
Nguyen The Minh, head of retail research at brokerage Yuanta Vietnam, told VnExpress International that the stock market boom has helped brokerages profit handsomely from their investments.
By the end of March, the benchmark VN-Index had risen 80 percent from the same period last year when the market hit its bottom with investors fearing the first Covid-19 outbreak could hurt the economy badly.
As the market started to recover throughout the year and approached its previous historic peak of 2018, a wave of new investors started pouring money into stocks, seeking income from this asset class as bank deposit interest rates fell.
Nearly 113,900 new trading accounts were opened last month, the highest monthly figure ever, breaking the previous record in January, bringing the total number of accounts to nearly 3.02 million.
Minh said that the surging number of new investors also increased revenues and profits of brokerages, and more investors were set to enter the market in the remaining months of the year as stocks remained one of the most attractive investment options.
“After surpassing the historic 1,200 level, VN-Index will likely hit 1,300 points this year, and that will draw many investors to the market while retaining existing ones who do not want to deposit their money in banks with low interest rates,” he added.