Total margin lending tops US$2.83b in Q3

Traders work at MB Securities Co. — VNS Photo Truong Vi

The total of outstanding margin loans on the local market after nine months reached a record high of VND66 trillion (US$2.83 billion), cafef.vn reported.

The Vietnamese stock market underwent a robust third quarter, in which the benchmark VN-Index on the Ho Chi Minh Stock Exchange gained a total of nearly 10 per cent in three months to 905.21 points.

Along with the expansion of the index, trading liquidity also soared. The average trading value on the Ho Chi Minh Stock Exchange in Q3 was up 4 per cent on-quarter and 56 per cent on-year to VND4.53 trillion each day – the highest since the market boom in Q1, 2018.

Strong margin lending by securities firms is considered among key factors for the market surge in the past quarter and to counter the strong foreign selling pressure.

In July-September, foreign investors net-sold total VND2.1 trillion worth of assets on HoSE. If the put-through buying of Vinhomes shares (VHM) was excluded, the net foreign sell value tripled to VND7 trillion.

The top 20 biggest securities companies made total loans of VND57.6 trillion in the third quarter, up 19 per cent from the second quarter and 33 per cent from the first quarter.

Mirae Asset Securities topped the market as it loaned out total VND9.67 trillion, up 13 per cent on-year. Its total lending was equal to the combination between HCM City Securities (HSC) and KIS Securities (KIS).

HSC was also among securities firms that saw margin lending growth jump in the third quarter. The company’s lending increased by 42 per cent on-year to VND6.02 trillion.

Other companies included VPS Securities (up 57 per cent on-year to VND3.17 trillion), VietCapital Securities (up 49 per cent on-year to VND3 trillion), and VietDragon Securities (up 31 per cent on-year to VND1.73 trillion).

Among brokerage firms with outstanding loan of below VND1 trillion, Pinetree Securities posted a 59 per cent annual growth in total lending – the highest rate in the sector – which reached VND251 billion in the third quarter. — VNS