The State Securities Commission (SSC) has carried out measures to strengthen the domestic stock market after the current strong fluctuations.

A trial run of a stock trading system from the Republic of Korea with securities companies will be conducted after the Tet (Lunar New Year) holiday, said Tran Van Dung, Chairman of the State Securities Commission of Vietnam (SSC).

The State Securities Commission (SSC) will soon launch an electronic one-stop information disclosure system for the stock market, news site tinnhanhchungkhoan reported on Thursday.

As the covid-19 epidemic has been escalating, the market capitalization value has been sliding. Market losses have reached $44 billion.

In addition to promulgating legal documents to ensure the enforcement of the amended Securities Law, the State Securities Commission (SSC) will put the new transaction system into operation and consolidate the corporate bond market.

Chair of the State Securities Commission (SSC) Tran Van Dung commented that the investors have ‘overreacted’ to the nCoV outbreak, believing that the market will recover when the epidemic peaks, as it happened with SARS and H5N1.

The derivatives market is likely to grow stronger in 2020, offering high profitability to investors, analysts have said.

The prospect of the Vietnamese stock market this year will be brighter, with profits of listed firms in 2020 likely to increase by 18% against 2019 while the VN-Index may rise by 20.7%.

If Vietnam’s proportion in MSCI market increases by 3 percent, the stock market can expect to receive VND1.5 trillion more worth of capital, analysts say.

A number of securities companies now are earning big money from corporate bonds.

VietNamNet Bridge - Analysts believe the goal to increase the number of investors in securities is within reach as Vietnam’s stock market is expected to be upgraded to a secondary emerging market.

VietNamNet Bridge - Many banks, fund management companies, insurance and securities companies have been setting up debt funds.

VietNamNet Bridge - Analysts believe that at least $1.2 billion will flow into the market after the upgrading of the country’s status.

VietNamNet Bridge - Since opening again after the long Tet holiday, the stock market has bounced back, restoring investors’ confidence in the market.

VietNamNet Bridge - Foreign capital inflow to Vietnam was still higher than outflow by $1.8 billion, or VND41 trillion, an increase of 60 percent over 2017.

Large securities companies have made big leaps in their development. The total market share held by the top 10 securities companies increased from 40 percent in 2010 to 70 percent by the end of Q3 2018.

 The State Securities Commission (SSC) and the Japan International Co-operation Agency (JICA) on Monday signed a project agreement to improve the quality, transparency and equality of the Vietnamese stock market.

VietNamNet Bridge - Commercial banks will find it hard to maintain a high profit growth rate in 2019 as credit  and retail banking services will still be the major driving force for bank growth.

VietNamNet Bridge - Analysts believe that the upgrading of the Vietnam’s stock market from frontier to secondary emerging will occur in 2019, or at the latest in 2020.