In the first quarter of 2022, the commodity trading market in Vietnam recorded a breakthrough development, with the trading volume continuously setting a record in the first 3 months of the year. Prices of important raw materials have all witnessed the strongest fluctuations in decades, attracting cash flows of domestic investors into the commodity market.
The top 5 commodity brokerage market shares have had a change in rankings
According to data from the MXV Transaction Management block, Gia Cat Loi Commodity Trading Joint Stock Company still ranked first in terms of commodity brokerage market share in Vietnam in the first quarter of 2022, accounting for 26% of the total trading volume. From the 5th position in 2021, International Commodity Trading Joint Stock Company (MXL) has the second largest brokerage market share in the country, accounting for 22% of the total trading volume. Ho Chi Minh City Commodity Trading Joint Stock Company (HCT) accounted for 20%, ranked 3rd. Saigon Futures Joint Stock Company and Huu Nghi International Investment Company Limited (Finvest) respectively ranked next with 7% and 6% brokerage market share.
The Top 5 has begun to change in both rankings and market share, as other market members also recorded significant developments in 2022. Among them, Commodity Trading Joint Stock Company VMEX, SCE Commodity Trading Joint Stock Company and VQB Minerals and Trading Group Joint Stock Company are members with significant growth in brokerage market share.
In the first quarter of 2022, MXV licensed 2 more trading members, bringing the number of market members to 33 trading members and 4 brokerage members. The members are both partners and extension arms to help MXV organize a transparent, professional and efficient market and contribute to the development of the commodity trading market in Vietnam.
Commodity prices increased sharply, energy and agricultural products attracted cash flow
In the first 3 months of the year, the prices of most key raw materials witnessed a sudden increase. This is reflected in the movement of the MXV-Index, when the index broke the record level of 3,000 points in early March. In the first quarter, the MXV-Index increased by 24.5%. , is the largest quarterly increase since MXV’s issuance.
Of the four commodity groups being traded at MXV, energy and agricultural products are the two groups with the most fluctuations. The MXV-Index of Energy and MXV-Index of Agricultural Products increased by 41.9% and 21.6% respectively in the first quarter. It is not surprising that these two groups have attracted the most investment cash flows in Vietnam. South in the early part of this year.
Specifically, WTI crude oil linked with NYMEX is currently the most traded commodity by domestic investors, accounting for 13% of total transactions from January 1 to March 31. WTI oil price has at times increased by more than 70% compared to the end of 2021, before cooling down to below 100 USD/barrel. Oil price is still fluctuating on average from 3 to 4 USD/barrel per session, so this will still be a key item in the portfolio of commodity investors in Vietnam in the second quarter of this year.
For agricultural products, wheat, corn and soybean meal on the Chicago Board of Trade accounted for 11%, 9% and 8% of the trade share, respectively. Although the cash flow was slightly shifted to the energy group, agricultural products have always been the group with the largest trading volume at MXV since the Vietnamese commodity trading market was connected to the world until now.
The uniformity in trading volume of commodities shows that domestic investors are very sensitive to fluctuations in many different commodity markets. MXV is listing 31 items with a continuous trading time frame from 5:00 a.m. Monday to 4:00 a.m. every Saturday, so it is suitable for many investment forms and sizes. The transaction value at MXV in the first quarter of 2022 reached an average of VND 5,293 billion per session, a breakthrough compared to the fourth quarter of 2021. In which, there were sessions with trading value exceeding 10,000 billion dong.
Micro WTI oil and the bounce of the energy trading market
According to statistics from MXV, WTI micro crude oil is currently the product with the largest transaction growth rate and receives special attention from investors in Vietnam. In March 2022 alone, there were nearly 18,500 contracts of WTI micro crude oil traded, an increase of 190% compared to February.
This is a very remarkable result for a product that is not only new in Vietnam, but also new worldwide. In November last year, MXV officially put WTI micro crude oil into trading, just 4 months after the product was listed by CME Group. It is this sensitive and timely addition that has helped domestic commodity investors to have an effective trading product with low cost.
Currently, to trade 1 contract of WTI micro oil requires a capital of about 1,045 USD, compared to 10,450 USD when trading 1 standard WTI oil contract. The trading performance of WTI micro oil is almost identical to that of standard WTI oil, but the value of each price step is much smaller. This product is especially suitable for investors who are new to the market and investors with small capital scale.
With a capital of less than 30 million dong, crude oil can be traded in both buying and selling directions, T0 transactions are directly connected to the world, transparent and multi-dimensional information, so WTI micro oil is being monitored. hopes to become the most traded product at MXV this year. Not only an investment product, WTI micro oil may be the key to helping the domestic petroleum business solve the problem of price insurance against unpredictable fluctuations of the world oil market in the rest of the year. 2022.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
