HoSE profits soar as trading accounts surge

By Phuong Dong May 22, 2021 | 06:58 pm PT

A new investor (L) registers for a new trading account at a brokerage in Ho Chi Minh City. Photo by VnExpress/ Quynh Tran.

Vietnam’s main bourse HoSE saw its 2020 pre-tax profits surge to a record high of VND691 billion ($30 million), thanks to new investors.

The 46 percent year-on-year increase is highest in the bourse’s 20 year history.

The exchange’s 2020 revenues surged 39 percent to nearly VND993 billion, also a record high. Transaction fees, which HoSE collects at 0.027 percent, accounted for 89 percent of its revenue.

The increase in revenue and pre-tax profit rising figures happened as new investors flocked into the stock market, prompted by dwindling bank deposit rates.

Nearly 393,659 new domestic accounts were opened last year, up 109 percent year-on-year, the highest ever figure recorded in the country to date, according to the Vietnam Securities Depository (VSD).

As of April, Vietnam had 3.14 million securities accounts, or 3.2 percent of the population.

HoSE targets a revenue growth of 7 percent this year but expects pre-tax profit to go down by 6 percent.

It will also strive to resolve completely the issue of system overload that has happened several times this year.