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Vietnam Stock Market in Quarter III 2021

Vietnam stock market in quarter III 2021

It is expected that the launch of LiveTrade App in November will coincide with the stock market recovery, bringing positive changes to this potential investment environment.

Vietnam stock market entered a correction and fluctuated in the third quarter of 2021 due to the pressure of negative information from the pandemic and macroeconomic factors. However, from October, the market is forecasted to reach equilibrium and get out of the sideways trend if the economy recovers smoothly.

The Vietnam stock market rallied strongly in the first half of the year before the big volatility in the third quarter under the severe impact of the Covid-19 pandemic. Since the beginning of the year, the VN-Index has grown by 20% in terms of points, while the trading value has increased by 290% over the same period last year. Otherwise, only in this third quarter, this figure is negative 5% and equal 291% over the same period.

The general market in the third quarter of 2021 was in a not very positive situation, with the indexes all correcting sharply in July, and the VN-Index increasing in August but decreasing in September. Closing the final session of the third quarter, the VN-Index was at 1,342.06 points, corresponding to a decrease of 66.49 points (-4.72%) compared to the end of the second quarter.

As announced by Ho Chi Minh City Stock Exchange (HOSE), the top 10 securities companies with the largest brokerage market share on HOSE remained unchanged from the previous quarter. Leading this ranking is still VPS Securities Joint Stock Company (VPS), with 16.5% market share, slightly up from 16.4% at the end of the 2nd quarter. This is also the third consecutive quarter VPS holds this position. SSI Securities Joint Stock Company (SSI) ranks 2nd while holding 11.58% of the market share, also slightly up from 10.97% at the end of the past quarter. At the same time, VNDIRECT Securities Corporation rises to achieve the 3rd position with 7.72% of market share

In the opinion of VNDIRECT experts, in October, the stock market will receive several positive supporting factors as the number of new daily Covid-19 cases tend to continue decreasing thanks to higher vaccination rates. Besides, GDP growth and earnings of listed companies are expected to recover in the fourth quarter of 2021 as the economy gradually reopens.

Furthermore, the capital flow in the market is also supported by the recent trend of capital increase of securities companies, which helps to increase the loan capital in the market and ensure that the margin source is not limited at the time of strong volatility. The net selling pressure of foreign investors will also ease, corresponding to the improvement of the fourth quarter business results.

Overall, the stock market may be able to get out of the sideways situation and enter a new rally. All the above are bright indications for the market in particular and Vietnam’s economy in general in the last quarter of 2021. As KBSV’s forecast, the target price area of ​​the VN-Index in the next 3 months will surpass the resistance zone of 1,380, possibly approaching 1,400 points.


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