Securities stocks are no longer cheap

On August 26, SSI securities shares surged to the ceiling at VND 39,200/share with a buy surplus of 8.4 million units; VIX hit the ceiling at VND 34,850/share with a buy surplus of 10 million units. Likewise, smaller securities stocks such as ORS, SHS, and many others also recorded strong demand after the recent sell-off sessions.

According to statistics, the average daily liquidity on HoSE in August has reached VND 45,000–60,000 billion. On some sessions across both exchanges, total trading value climbed to as high as VND 70,000 billion.

With such high liquidity, experts forecast this will be a positive driver for securities companies’ revenues, particularly in brokerage services.

In the financial sector, securities companies recorded the highest after-tax profit growth, up 39.5% year-on-year. Firms such as TCBS, SSI, MBS, and VPS posted strong earnings growth, while others like VIX, CTS, and SHS scored big from proprietary trading.

However, whether securities stocks are cheap or expensive still depends on multiple factors.

At present, the unprecedented scale of margin lending remains a potential risk. By the end of Q2 2025, total outstanding margin loans at securities firms reached VND 303,000 billion, the highest level ever recorded.

Looking at the price-to-book (P/B) ratio, certain tickers such as VIX, SSI, MBS, CTS, and FTS are already trading above 2x book value. If the market maintains high liquidity, it is entirely possible for P/B ratios of securities stocks to rise to 2.5–3x.

With their signature “spikes and plunges,” securities stocks are drawing attention. Still, valuations have risen to high levels, requiring investors to be selective when identifying growth potential. Although deep market corrections—often dragging down securities stocks—remain common, high liquidity is generally seen as a favorable signal for securities firms. In particular, the prospect of Vietnam’s market upgrade in September continues to attract capital inflows, with securities stocks being the direct beneficiaries.

Excluding abnormal liquidity spikes, the average trading value of VND 30,000–35,000 billion per session is expected to become the “new normal” in the coming period. On this new liquidity base, securities firms’ business results are projected to improve significantly, and stock prices have already established a higher range.

By the end of August, the sector’s P/E ratio stood at 23.5x, about 42% higher than the average during 2020. While this is not excessively expensive, it does require investors to carefully assess the growth potential of individual securities firms before committing capital.

Overall, to pick quality securities stocks, investors need to weigh a combination of fundamental and technical factors. They should be cautious with companies that have high debt-to-equity ratios, which increase financial risk when the market corrects or interest rates fluctuate. In brokerage, firms with large margin loan balances but effective risk control—evidenced by low bad debt ratios—will benefit most from today’s elevated liquidity.

In summary, while most securities firms are directly benefiting from the market upgrade, rising indices, and surging liquidity, investors should prioritize companies with sustainable core operations and growth—rather than chasing stocks already priced far above book value or those with unsustainable, one-off earnings spikes.