Pocket Option: Detailed analysis of securities industry stock codes
The Vietnamese stock market is developing rapidly, attracting a large number of investors. Among investment sectors, securities industry stock codes stand out as a segment full of potential but also challenges. This article will provide a comprehensive view of this stock group, helping you build an effective investment strategy.
Pocket Option: Detailed analysis of securities industry stock codes
The Vietnamese stock market is going through a strong development phase, with the number of individual investors surging in recent years. In this context, securities industry stock codes have become the focus of many investors thanks to their high profitability and close correlation with the development of Vietnam's capital market.
1. Overview of securities industry stock codes in Vietnam
Vietnam's securities industry includes brokerage companies, fund management companies, and financial advisory firms listed on HOSE, HNX, and UPCOM. With over 20 years of development history, the securities stock group has become one of the most dynamic segments in the market.
| Stock code | Company name | Listed exchange | Market cap (billion VND) | Brokerage market share (%) |
|---|---|---|---|---|
| SSI | SSI Securities Corporation | HOSE | 35,720 | 10.25 |
| VND | VNDIRECT Securities Corporation | HOSE | 15,450 | 8.76 |
| VCI | Ban Viet Securities Company | HOSE | 8,250 | 4.35 |
| HCM | Ho Chi Minh City Securities Corporation | HOSE | 7,540 | 5.87 |
| MBS | MB Securities Joint Stock Company | HNX | 6,350 | 4.92 |
Securities stock codes in Vietnam are often referred to by investors as "locomotive engines" - they typically respond quickly to market fluctuations and have a high correlation with the VN-Index. This characteristic creates both opportunities and challenges for investors.
According to Pocket Option's assessment, brokerage market share is the most important indicator when analyzing securities industry stock codes. Companies with high market share typically benefit significantly when market liquidity increases and have a stable customer base that generates regular cash flow.
2. Fundamental analysis of securities stock group
To properly assess the potential of securities stock codes, investors need to understand the revenue and profit structure of companies in the industry. Unlike many other sectors, securities companies have diverse income characteristics that fluctuate strongly with market cycles.
2.1. Revenue structure of securities companies
- Securities brokerage: Accounts for 30-50% of total revenue, directly dependent on market trading value
- Proprietary trading: Contributes 15-30% of revenue, fluctuates strongly with market trends
- Financial services (margin): Makes up 20-35%, creates stable revenue stream from lending interest
- Corporate financial advisory: About 5-15%, includes IPO consulting, issuance, M&A
- Asset management and other services: 5-10%, showing growth trend
Pocket Option's analysis indicates that securities companies with diversified revenue structures, not overly dependent on a specific business segment, usually have better ability to adapt to market fluctuations. This is an important factor helping investors assess safety levels when selecting securities stock codes.
| Financial indicator | Meaning | Industry average | Good level |
|---|---|---|---|
| ROE | Efficiency of shareholder equity utilization | 12-15% | >18% |
| ROA | Efficiency of asset utilization | 4-7% | >8% |
| P/E | Valuation relative to earnings | 10-15 | <10 (low valuation) |
| P/B | Market value relative to book value | 1.5-2.5 | <1.5 (low valuation) |
| Capital adequacy ratio | Level of financial safety assurance | 180-250% | >300% |
When examining financial indicators, investors should pay special attention to ROE (Return on Equity) and capital adequacy ratio. High ROE reflects good capital utilization efficiency, while a high capital adequacy ratio demonstrates the company's risk resilience and ability to meet regulatory requirements.
3. Factors affecting securities stock codes
Securities stocks are influenced by many factors, including both macroeconomic and industry-specific factors. Understanding these factors helps investors more accurately predict price movements of this stock group.
| Factor | Impact level | Effect |
|---|---|---|
| Market liquidity | Very high | Directly impacts brokerage fee revenue and margin lending |
| Interest rates | High | Affects cost of capital, margin lending profits, and asset valuation |
| Market regulatory policies | High | Impacts trading volume and new business opportunities |
| Inflation | Medium | Affects cost structure and investor behavior |
| Industry competition | Medium | Impacts market share and profit margins |
3.1. Correlation with the general stock market
A prominent feature of the securities stock group is its high Beta coefficient, typically ranging from 1.3-1.8. This means when the VN-Index increases by 10%, securities industry stock codes may increase by 13-18%. Conversely, when the market declines, this group also tends to suffer deeper declines.
Pocket Option notes that this phenomenon stems from the direct link between securities companies' revenue and market vibrancy. When the market rises strongly, liquidity improves, and securities companies benefit from brokerage, margin lending, and proprietary trading.
In particular, securities industry stock codes often play a "wave-leading" role in many market cycles. They typically begin rising before the general market recovers and also decline earlier when the market enters a correction phase. Therefore, monitoring the movement of this stock group also helps investors identify general market trends.
4. Technical analysis for securities industry stock codes
Due to their highly volatile nature, technical analysis plays an important role when trading securities stock codes. Technical analysis tools help investors determine market entry/exit points and manage risk more effectively.
- Trend analysis with Moving Average (MA): Combining short MA (MA20) and long MA (MA50, MA100) to identify the main trend
- Using MACD (Moving Average Convergence Divergence) to detect trend reversal points
- RSI (Relative Strength Index) indicator helps identify overbought/oversold zones
- Volume confirms trend strength
- Common price patterns: Head and shoulders, triangles, flags, and Fibonacci retracement tests
| Technical indicator | Buy signal | Sell signal | Reliability |
|---|---|---|---|
| MA crossover | MA20 crosses above MA50 | MA20 crosses below MA50 | High when combined with volume |
| MACD | MACD crosses above Signal Line | MACD crosses below Signal Line | Medium to high |
| RSI | RSI < 30 and begins rising | RSI > 70 and begins falling | High in sideways markets |
| Bollinger Bands | Price touches bottom band and bounces up | Price touches top band and moves down | Medium |
Pocket Option's analysis experts recommend that investors should not rely on a single technical indicator but combine multiple indicators for robust confirmation signals. At the same time, technical analysis should be supplemented with fundamental analysis of the company's business situation and general market trends.
5. Effective investment strategies for securities stocks
Investing in securities industry stock codes requires not only expertise but also strategies suitable for each market phase and personal investment goals. Below are some effective strategies that investors can consider:
5.1. Market cycle-based strategy
The securities stock group has high cyclicality, so correctly identifying the market phase is a decisive factor for successful investment in this group.
| Market phase | Characteristics | Strategy for securities stocks |
|---|---|---|
| Market bottom | VN-Index deeply declining, depleted liquidity, pessimistic sentiment | Begin accumulating stocks with strong financial foundations and high capital adequacy ratios |
| Initial recovery | Market recovering from bottom, gradually improving liquidity | Increase allocation, prioritize companies with large brokerage market share |
| Strong growth | VN-Index rising steadily, high liquidity, optimistic investors | Maintain portfolio, consider buying more after correction phases |
| Market peak | Stretched valuations, peak liquidity, FOMO appears | Gradually reduce allocation, take profits on part of portfolio |
| Correction | Market declining, decreasing liquidity | Withdraw capital, switch to safer investment channels |
Pocket Option emphasizes the importance of identifying market cycle transition points through macroeconomic and technical indicators. In particular, changes in market liquidity are often early signals of market cycle phase transitions.
- Diversify portfolio within the securities stock group, not concentrating too much on one stock
- Allocate capital by size and business model: 50-60% to leading companies, 30-40% to potential companies, 10-20% to special opportunities
- Set clear expected profit levels and stop-loss levels for each trade
- Rebalance portfolio periodically (quarterly) or when significant market changes occur
- Apply DCA (Dollar-Cost Averaging) strategy for long-term investment
6. Risk management when trading securities stock codes
Due to their highly volatile nature, applying risk management principles is extremely important when investing in securities industry stock codes. A good risk management strategy will help protect investment capital and ensure long-term market survival.
| Risk type | Manifestation | Management measures |
|---|---|---|
| Market risk | Price volatility due to macroeconomic factors, market sentiment | Portfolio diversification, using derivatives for hedging, setting stop-loss |
| Liquidity risk | Difficulty buying/selling stocks in large volumes | Prioritize highly liquid stocks, limit allocation to low liquidity stocks |
| Company-specific risk | Issues with governance, business model, legal compliance | Thorough research before investing, monitoring related news and reports |
| Psychological risk | FOMO, FUD, non-compliance with trading discipline | Building clear trading plans, controlling emotions, learning from experience |
Pocket Option recommends investors apply the 2% capital allocation rule - meaning the maximum loss for each trade should not exceed 2% of total investment capital. At the same time, the total investment value in one securities stock code should not exceed 10-15% of the total portfolio to limit concentration risk.
A noteworthy point that few investors pay attention to is liquidity risk. Although leading securities stock codes typically have good liquidity, in highly volatile market conditions, liquidity can suddenly decrease. Therefore, investors should build a "safety cushion" by maintaining a portion of cash in their portfolio and not using excessive leverage.
7. Future prospects of Vietnamese securities stock group
Looking at medium and long term, Vietnamese securities industry stock codes still have many growth drivers thanks to the development potential of Vietnam's stock market in particular and the economy in general.
- The proportion of people participating in the stock market is only about 5-7%, with much room for growth compared to developed countries (30-40%)
- The process of shifting from savings to investment is increasingly evident, especially among young population
- The roadmap for market upgrade from frontier to emerging status will attract large foreign capital flows
- The number of listed companies is expected to increase strongly as many large private enterprises IPO
- Digital transformation helps save costs and expand customer base
| Development trend | Impact on securities companies | Benefiting companies |
|---|---|---|
| Digital transformation, new technology applications | Reduced operating costs, improved customer experience, expanded customer base | Companies investing heavily in technology: VND, SSI |
| Diversification of investment products | Creating additional revenue sources, reducing dependence on brokerage | Companies with product development capabilities: SSI, HCM |
| Attracting foreign capital | Increasing capital scale, enhancing competitiveness | Companies with good governance, transparency: VCI, SSI |
| Fee competition | Pressure on profit margins, requiring operational optimization | Companies with large scale, low costs: VND, MBS |
Pocket Option assesses that differentiation within the securities stock group will become increasingly clear. Companies with strong financial capabilities, investing in technology and product development will capture market share and create greater value in the long term. In particular, the consolidation trend (M&A) in the industry may occur strongly in the next 3-5 years, creating attractive investment opportunities.
Conclusion
Securities industry stock codes are an attractive investment segment in the Vietnamese market, offering great profit opportunities but also containing significant risks. To successfully invest in this stock group, investors need to understand its cyclical nature, correlation with the general market, and factors affecting securities companies' business results.
Effective investment strategies need to combine both fundamental and technical analysis, while applying strict risk management principles. Pocket Option recommends investors approach the securities stock group with a long-term vision, focusing on companies with strong financial foundations, diverse business models, and clear development strategies.
The Vietnamese stock market with its great growth potential in the coming decade will continue to be the main driver for the development of securities companies. From an investment perspective, securities industry stock codes will remain a potential investment channel for investors with the right strategies and long-term discipline.