VietNamNet Bridge – The news that Vincom Securities Company (VincomSC) has announced the plan to withdraw from the market has immediately caused a stir-up in the market. Analysts believe that many other securities companies would follow the move, especially when the stock market is getting cool.
VincomSC on October 26 announced the close down of its trading floor in the north to focus on the headquarter in the south. The move is part of the economic group’s plan to give up securities trading.
The leave of someone would be the opportunity for others
The withdrawal of VincomSC, a company with 18,000 securities accounts, is believed to create opportunities to other operational securities companies.
Just one day after VincomSC released the announcement, on October 27, a lot of securities investors came to VincomSC’s trading floor in Hanoi to listen to the news and make necessary procedures to close accounts there. An officer of the trading floor said many investors came to place orders to sell securities, withdraw money from their accounts, or open accounts at other securities companies.
An investor told VietNamNet that the first thing he had to do after hearing about the close down is to withdraw all the money from his account. He said that he would open an account at a company headquartered in the north, rather than a one in HCM City.
Long, another securities investor, also said that he and some of his friends have also closed the accounts at VincomSC. They are planning to open accounts at big securities companies belonging to commercial banks, because they believe once the companies are backed by banks, they would get support from the parent banks.
Long even believes that the market would witness another withdrawal , and that it would be better to open accounts at big companies than small ones.
VincomSC has said that the current clients of VincomSC in the north will have three choices, either to maintain their accounts at the company which would then be transferred to the trading floor in HCM City, or to close the accounts at VincomSC, or transfer the accounts to VPBank’s Securities Company.
It seems that most investors choose the latter option.
Having realized that a big number of investors are looking for suitable service providers, securities companies have been rushing to approach the investors and persuade them to become their clients\. Some of the companies have sent staff to VincomSC’s trading floor to meet and persuade new clients.
A broker from a securities company has revealed that at this moment, when the market is gloomy, it is the right time for securities companies to develop the scope of?? services. Therefore, it would be a very important task to seek more clients now. His company not only tries to access individual investors, but also VIP clients, and institutional investors.
When the stock market becomes gloomy
In fact, many securities companies have narrowed their business scope after a lot of ups and downs in the market. The first thing they did was to shut down branches in small areas with few investors. Some even had to stop providing the services which require high chartered capital. Some others have been trying to transfer capital to foreign partners.
Three years ago, when the stock market was scorching hot, securities companies were mushrooming. There are about 100 operational securities companies now. However, in fact, securities investors only know 20 biggest companies, while the other companies are all small and less known. The top 10 companies alone are holding 50 percent of the market share, while the other 90 companies have share the other 50 percent.
Previously, when the market was hot, small companies still did well by trading securities themselves. However, as the market has become gloomy, the companies cannot live solely on services.
It is clear that the small stock market in Vietnam is not a big cake which can be divided into enough pieces to all securities companies. Therefore, analysts have said that it would be not a surprise if other companies follow VincomSC’s move and decide to leave the market.
Le Khac Hiep, Chair of Vincom, the parent company of VincomSC, admitted that the company has not been doing well, failing to meet the business targets.
Le Khac
The leave of someone would be the opportunity for others
The withdrawal of VincomSC, a company with 18,000 securities accounts, is believed to create opportunities to other operational securities companies.
Just one day after VincomSC released the announcement, on October 27, a lot of securities investors came to VincomSC’s trading floor in Hanoi to listen to the news and make necessary procedures to close accounts there. An officer of the trading floor said many investors came to place orders to sell securities, withdraw money from their accounts, or open accounts at other securities companies.
An investor told VietNamNet that the first thing he had to do after hearing about the close down is to withdraw all the money from his account. He said that he would open an account at a company headquartered in the north, rather than a one in HCM City.
Long, another securities investor, also said that he and some of his friends have also closed the accounts at VincomSC. They are planning to open accounts at big securities companies belonging to commercial banks, because they believe once the companies are backed by banks, they would get support from the parent banks.
Long even believes that the market would witness another withdrawal , and that it would be better to open accounts at big companies than small ones.
VincomSC has said that the current clients of VincomSC in the north will have three choices, either to maintain their accounts at the company which would then be transferred to the trading floor in HCM City, or to close the accounts at VincomSC, or transfer the accounts to VPBank’s Securities Company.
It seems that most investors choose the latter option.
Having realized that a big number of investors are looking for suitable service providers, securities companies have been rushing to approach the investors and persuade them to become their clients\. Some of the companies have sent staff to VincomSC’s trading floor to meet and persuade new clients.
A broker from a securities company has revealed that at this moment, when the market is gloomy, it is the right time for securities companies to develop the scope of?? services. Therefore, it would be a very important task to seek more clients now. His company not only tries to access individual investors, but also VIP clients, and institutional investors.
When the stock market becomes gloomy
In fact, many securities companies have narrowed their business scope after a lot of ups and downs in the market. The first thing they did was to shut down branches in small areas with few investors. Some even had to stop providing the services which require high chartered capital. Some others have been trying to transfer capital to foreign partners.
Three years ago, when the stock market was scorching hot, securities companies were mushrooming. There are about 100 operational securities companies now. However, in fact, securities investors only know 20 biggest companies, while the other companies are all small and less known. The top 10 companies alone are holding 50 percent of the market share, while the other 90 companies have share the other 50 percent.
Previously, when the market was hot, small companies still did well by trading securities themselves. However, as the market has become gloomy, the companies cannot live solely on services.
It is clear that the small stock market in Vietnam is not a big cake which can be divided into enough pieces to all securities companies. Therefore, analysts have said that it would be not a surprise if other companies follow VincomSC’s move and decide to leave the market.
Le Khac Hiep, Chair of Vincom, the parent company of VincomSC, admitted that the company has not been doing well, failing to meet the business targets.
Le Khac
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