Investors double deposits in Vietnam securities firms

The funds available for trading as of August 20 was twice the daily average trading value of March 2018, when the VN-Index hit an all-time high of 1,204 points, implying that the market is not overbought (being traded above its fair value), according to a report by stock brokerage firm KIS Vietnam.

In August, domestic investors opened 28,300 new trading accounts, up 60 percent year-on-year.

These figures show that this year, "instead of sunbathing or swimming, many people have become F0 investors and made trades around the clock," said the report, referring to first-time investors in the stock market.

In August, VN-Index enjoyed the largest gain in the last ten years and became the top gainer globally. Daily average trading value was VND5.1 trillion, up 12 percent from July.

As the VN-Index trades around 900 points, September may become the most exciting month for the Vietnam stock market this year, the report said.

With the number of new Covid-19 cases dropping as Vietnam works to contain the second wave of the pandemic in the country, analysts with another stock brokerage firm, MB, have forecast that the index could reach up to 925 points this year.