Securities stocks strengthen after draft on T+2 settlement cycle

Information that the T+2 settlement cycle is about to be deployed helped the group of securities stocks to attract the cash flow in the trading session on June 29.
Before today's trading session, investors received the news that the Vietnam Securities Depository (VSD) had recently consulted on a draft regulation on clearing and payment of securities transactions under the direction of adjusting the payment time for completing the T+2 settlement cycle of the State Securities Commission of Vietnam.

One of the essential contents of this draft is the adjustment of the time for securities settlement and clearing banks to complete payment from 3.30 p.m. to 4 p.m. to from 11.30 a.m. to 12.30 p.m. on the trade date plus two days (T+2). With this new regulation, investors can trade right in the afternoon trading session of T+2.

According to the draft, the money for securities transactions will be transferred to investors' accounts one day earlier than the old regulations. Therefore, investors can use the money to buy securities right in the afternoon trading session of T+2 instead of having to advance money as before.

The new regulation on clearing and payment of securities transactions is expected to be applied as of August. According to the notice sent to the participants, VSD will collect opinions on the draft regulation before July 5.

The application of T+2 is expected to positively affect the business performance of securities companies, especially the brokerage segment, thanks to fast cash flow. Stocks of securities companies such as VCI, VND, SSI, HCM, FTS, AGR, and CTS also rebounded today.

However, the green color from the above stocks could not help the VN-Index maintain the upward trend due to profit-taking pressure from stocks in the VN30 basket, including ACB, BVH, GVR, PDR, PLX, POW, SAB, TPB, VCB, VHM, VIC, VJC, and VRE.

On the contrary, the benchmark received support from pillar stocks like HPG, BID, GAS, and VNM. The timely return of these stocks cushioned the VN-Index to decrease slightly by 0.01 points. However, losers dominated the market with 263 stocks, compared to 184 gainers and 67 unchanged stocks.

Market liquidity suddenly dropped to only VND11.84 trillion (US$509.65 million), equivalent to 569.5 million shares successfully transferred.

By Hai Ho – Translated by Da Nguyet

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