Good first-quarter performances have helped the 21 biggest securities companies post higher half-year earnings in 2018 despite the decline of the stock market in the past quarter.

The total revenue of the 21 securities firms in the first six months of the year was reported at VND10.7 trillion (US$465.2 million), a year-on-year increase of 54 per cent, and their post-tax profit rose 39 per cent year-on-year to VND3.5 trillion.

The three companies with highest half-year profits were Saigon Securities Inc (SSI), Viet Capital Securities (VCSC) and HCM City Securities Corp (HSC), respectively recording VND707 billion, VND530.6 billion and VND471.8 billion.

The sharp increase in securities firms’ earnings in the first half of 2018 was attributed to the strong growth of the stock market in the first three months, which offset the disappointing market performance in the second quarter.

Since the beginning of the year, the benchmark VN-Index advanced 22.4 per cent to hit its all-time high of 1,204.33 points on April 9, with average market trading liquidity of each session ranging from VND9 trillion to VND11 trillion.

The high trading liquidity of the stock market in the first three months helped securities firms earn a lot from proprietary trading and advisory activities – their two core business activities.

Since that day, the VN-Index has lost as much as 24.8 per cent to near 900 points. It ended July 31 at 956.39 points, losing a fifth of its value from the highest level of 1,204.33 points.

Along with the decline of the VN-Index, the stock market has also witnessed a strong reduction in market trading liquidity, which has remained between VND3-5 trillion each session as investors lost their confidence in the market’s recovery.

The negative trend of the stock market in the second quarter has dampened earnings of the 21 securities firms. Their total revenues rose 23 per cent on-year to VND5.17 trillion, but their profits fell 13 per cent on a yearly basis to VND1.36 trillion.

Among those firms, Asia Commercial Bank Securities JSC (ACBS) was the only firm to suffer a loss, posting VND17 billion in losses for the second quarter. — VNS