Chủ đề: 9 Jul - Vietnam Stock Market Overview

Vietnam Stock Market Overview


9 July: VN-Index rises in second consecutive session


The index of Ho Chi Minh City Stock Exchange (HOSE) sees the second rising consecutive day on July 9 and returns to the 439 point level of two days ago.

The VN-Index gained 2.84 points, or 0.65% at 439.55 today.

The statistics show that 86 stocks closed up, 55 down and 12 unchanged.

The trading volume remains strong with total 14 million shares changing hands with value of VND508.4 billion today, falling slightly from yesterday.

Sacombank (STB) continues to lead the market in volume with 2.78 million shares. It rose 2.87% at VND25,100.

Phu My Fertilizer (DPM) followed with 1.83 million shares traded. DPM is also the most advancer, soaring 3% to close at VND51,500.

Vitaco (VTO) stayed flat at VND16,200 with a big volume of nearly 630,000 shares.

Sacom (SAM) ranked fourth among the most active, but it fell 2.62% at VND26,000 with nealry 590,000 shares matching orders.

Majority of blue chips closed up, beside above-mentioned stocks, such as PetroVietnam Drilling (PVD), Hoa Phat Group (HPG), FPT Corp (FPT).

Beside DPM, Construction No.5 (SC5) also rocketed 5% at VND30,900.

On the contrary, the worst players today are Lu Gia (LGC) and Saigon Garment (GMC), both falling 2.96% at VND42,600 and VND16,400 respectively.

Mirae (KMR) is the only stock without any share matching order today.

Among fund certificates, three closed up and one unchanged. They had 1.3 million units traded today.




9 July: HASTC-Index goes up slighlty fueled by blue chips

The index of Hanoi Securities Trading Center (HASTC) climbs up slighlty on July 9 for the second straight day, driven up by the rise of blue chips.

The HASTC-Index rose 0.79 points, or 0.63% at 125.92.

The trading volume and value decreased sharply from yesterday. Total 5.97 million shares matched orders with value of VND163 billion today, down 48% in volume and 44% in value yesterday.

Among total 142 stocks, 96 stocks went up, 35 down and 11 unchanged.

Asia Commercial Bank (ACB) is the most active stock, surging 3% at VND55,000 with 1.2 million shares traded.

The runners-up are Tien Phong Plastic (NTP) with 408,300 shares and Saigon Cable (CSG) with 320,600 shares. Both jumped up, with NTP up 3.88% at VND37,500 and CSG up 3.85% at VND13,500.

Thac Ba Hydropower (TBC), Kim Long Securities (KLS) and Song Da 7 (SD7) have strong volume of more than 200,000 shares each. TBC fell more than 2%, but KLS and SD7 rose more than 3%.

BVS, NVC, TLT, DCS and HPC are symbols with volume of more than 100,000 shares and all of these stocks went up.

The giant Kinh Bac (KBC) regained 0.19% at VND105,800.

Cho Lon Real Estate (RCL) and Yen Bai Agro Product (YSC) are the most advancers, both rising 4%.

Meanwhile, Construction 492 (C92) is the biggest loser, falling 3.98% at VND19,300.

Foreign investors bought 136,900 shares worth VND5 billion and sold 607,900 shares worth VND16 billion.





OTC market is ready, market watchdog says


The over-the-counter (OTC) market, where unlisted stocks can be traded, was ready to begin operating in the near future, Hanoi Securities Trading Center (HaSTC) Deputy Director Nguyen Vu Quang Trung said.

Reporter: The OTC market was scheduled to be operational in this year’s second quarter, but it still hasn’t opened. Has the HaSTC delayed the debut?

Nguyen Vu Quang Trung: No, we haven’t. The preparation for the market was completed and it is poised to be put into operation.

We conducted a trial run in February and a trial remote trading session between the Securities Depository Center and 69 brokerages in April.

Companies, which registered to list on the OTC market, are mainly unlisted brokerages, banks, financial firms and insurers.

I believe the number of the new market’s members will increase quickly as we will launch many promotion programs for it right after its debut.

We are now completing the final paperwork, which will only take a short time.

The formal stock markets [Ho Chi Minh City and Hanoi’s stock exchanges] remain gloomy, so what is the purpose of the OTC market?

It will be a more transparent marketplace for unlisted stock trades that will reduce the risk of traders being deceived.

Brokerages will also benefit from the OTC market, which will offer them more customers.

For unlisted companies, the OTC market will help their share transactions be executed transparently.

Do you expect investors will be interested in the OTC market?

A busy formal market will usually boost the OTC market and vice versa.

Therefore, it will take time for the OTC market to grow.

But its liquidity will surely be higher than the current forums, with traders making unlisted stock transactions at coffee shops or restaurants.

The government will also be able to oversee the transactions.

Will the enterprises listed on the OTC market have to comply with any regulations that are different with common unlisted firms?

Firstly, companies that want to participate in the new marketplace will have to register to list their shares on it.

The registration, which helps the market watchdog supervise the transactions, is very simple and quick.

Once an entity has become a member of the market, it will have to comply with the Ministry of Finance and the HaSTC’s regulations on announcing their share transactions, in addition to the Law on Securities instructions, which also provided guidelines on reporting share transactions for common unlisted companies.

Therefore, share transactions at the OTC market will be supervised very closely.

I insist investors participating in the OTC market have much better protection than before.

Which formalities will investors have to complete when they want to join the market?

Investors, who have already opened an account at a brokerage for listed stock transactions, will be able to use their account to trade unlisted stocks on the OTC market.

Those who haven’t opened any trading account at a brokerage will have to create one if they want to join the market.

There will be two ways to make transactions on the OTC market: investors bargain with each others and place selling or buying orders through brokerages later, or they place orders at brokerage and wait for their order to be matched.

How does the OTC market watchdog monitor brokerages?

All brokerages have to report transactions of unlisted stocks to the HaSTC before the HaSTC announces publicly through its daily bulletin.

The HaSTC also combines selling and buying prices every day to fix the preference price for unlisted stocks, which will be announced on the HaSTC’s trading boards.

After buying a parcel of shares, how long until an investor will be able to re-sell them?

Transactions will follow the T+3 standard [will be able to be sold on the third day after a transaction is completed].






Local businesses delay overseas listing
Many listed companies including large-scaled businesses such as Vinamilk, SSI and FPT expected to list in overseas bourses in 2008.

The State Securities Commission (SSC) considered the listing of Vinamilk shares on the Singapore Stock Exchange as a pioneer. However, driven by unfavorable conditions of both domestic and international economies from the start of 2008, some listed businesses have to suspend their plans on overseas listing.

Ngo Thi Thanh Tam, secretary for foreign affairs of the Saigon Securities Inc (SSI) confirmed that listing procedures are not difficult issues for the company. However, amidst the current unfavorable context of the domestic and international economies, SSI has decided to delay its listing plan on the Singapore Stock Exchange until the end of 2008, said Tam. Previously, SSI had planned to list 35,998,550 shares on the Singapore bourse.

Bui Ngoc Quang, vice general director of FPT, said that his company has not yet had any specific listing plan for 2008. He added that now is the difficult time for both domestic and world economies, it is hard to realize scheduled international listing plans.

A representative from Vinamilk also expressed his worry over the current difficult world economy. However, the representative confirmed that the company"s procedures on listing at the Singapore Stock Exchange have been completed. The dairy producer reported submitting all listing application documents to the partner and the similar documents have also been sent to SSC.

As regulated, when Singapore approves the application documents, Vinamilk will make next procedures to officially list on the Singapore bourse.

Not confirming whether Vinamilk will go on the Singapore bourse in the third or the fourth quarter of 2008, the representative said that the listing will surely be conducted this year no matter how worse the domestic and international economies are. As planned, this year, Vinamilk will issue additional shares to raise capital in the foreign market. The number of shares to be issued will be 5% of Vinamilk’s chartered capital at the applying time for licensing the share issuance.

Nguyen Vu Quang Trung, vice director of the Hanoi Securities Trading Centre, said he supported for domestic business" listing abroad. Nevertheless, this time is not the favorable time for Vietnamese businesses" seeking capital from the international bourse.

Trung added that local businesses should consider listing abroad however how to make listing profitable is not easy, particularly amidst the current context.





Requirements for foreign institutions to list in Vietnam


The Ministry of Finance has wrapped up a draft amendment of Decree 14 on the operation of the stock market which has regulations on allowing foreign institutions to issue and list securities in Vietnam.

Under the draft, foreign institutions which want to issue and list securities on Vietnam’s bourse must meet the conditions as follows:

First, their securities must have been listed on foreign stock exchanges which have cooperation agreements with the HCM City Stock Exchange or State Securities Commission.

Second, the institutions must have approved investment projects in Vietnam.

Third, they must get the consultancy of a Vietnamese securities company regarding offering and listing securities on the market.

In addition, foreign securities issuers have to show the following articles: decisions by their shareholders on the approval of the issuance and listing of securities in Vietnam; a license for the foreign institutions’ establishment and operation; documents showing the listing on foreign stock exchanges; and book of securities ownership registration.

Another noteworthy thing is that the financial reports of the foreign institutions must be made in accordance with international accountancy standards, and be accompanied by explanations about points that are different in comparison with Vietnam’s accountancy standards.

Banking, Finance & Economics


Vietnam’s July CPI forecast to keep easing

Vietnam’s consumer price index (CPI) is predicted to continue easing this month due to positive impacts of the government’s solutions.

Deputy Minister of Industry and Trade and head of the domestic market management team Nguyen Cam Tu said it is time the government’s solutions “could bring in effects” provided that “no new change factors” emerge.

Statistics released by the General Statistics Office (GSO) show that the CPI rose 2.14% in June over May, much lower than May’s record of 3.91%.

The six-month CPI soared 20.34% over the same period last year. In comparison with late 2007, the index increased by 18.44%.

Experts attributed the June CPI’s slowdown to initial success of the Government’s efforts to rein in inflation and stabilize the macro economy. This is seen as a good sign as the Vietnamese economy is entering the second half of the year.

Tu said that amid spiking world oil prices the government is taking urgent measures to stabilize domestic petroleum prices in an effort to ensure production, curb inflation and stabilize the macro economy. “Up to now, domestic petroleum prices are kept unchanged,” he said.

Regarding a plan to control prices of essential goods and give assistance to the poor in the context of high inflation, he said the Finance Ministry will inspect price-related factors in businesses, with a focus on 14 products that are important to production and consumption, and subject to state management.





Mekong firm aims to launch airline


Kien Giang province-based Mekong Aviation Joint Stock Company has submitted an application to the Civil Aviation Administration of Vietnam (CAAV) to launch carrier Mekong Air.

Mekong Aviation is the third private aviation firm to request a Vietnamese operating license. Vietjet Air and Speed Up Air have already been given permission by the Government to operate domestic services.

Mekong Air has a charter capital of VND600 billion (nearly US$36.4 million), some VND300 billion higher than the minimum required by the Law on Aviation to operate services within Vietnam.

Mekong Air said it planned to use Canadian Bombardier aircraft, which can carry 86-90 passengers, to fly from HCM City to Rach Gia, Phu Quoc, Ca Mau and Can Tho twice a day.

If given Government approval, Mekong Air will begin operations in the second quarter of next year.

However, it is uncertain whether the airline"s application will succeed. Lai Xuan Thanh, deputy director of CAAV, said the Prime Minister had earlier instructed the Ministry of Transport to delay making decisions on new airline applications.

Vietnam currently has five airlines operating domestic flights - State-owned Vietnam Airlines, Jetstar Pacific, Vasco and private operators Vietjet Air and Speed Up Air.

Vo Huy Cuong, head of CAAV"s Aviation Transport Department, said the Government"s decision not to grant new operating licenses was to review development strategies of the aviation sector and prevent too many carriers competing.

However, Cuong said CAAV would still pass on Mekong Air"s application to the Government for consideration.

He added that in 2007 the Government approved in principle an application by a company based in southern Kien Giang Province to launch a carrier service mainly in the Mekong River Delta.

Transport links in the Mekong region were poor, which was why the Government had endorsed the project, said industrial analysts.




Vietnam disburses US$1.1 Bln ODA, targets $2 Bln this year


Vietnam disbursed US$1.1 billion of official development assistance (ODA) in the first half this year, accounting for 58 per cent of the year’s target, the Ministry of Planning and Investment.

The figure included US$970 million soft loans and US$130 million of non-refundable aids, which was out of US$1.3 billion ODA pledged in agreements with donors, the ministry said.

This year, the country targets US$2 billion ODA disbursement to include US$250 million grants, the agency said.

Vietnam is fore to have US$1.3 billion in ODA pledged by donors by the end of the year with US$152 million grants and soft loans of US$1.19 billion.





Vietnam-US bilateral trade turnover report sharp increase


Total bilateral trade turnover between Vietnam and the US in the first four months of this year reached US$4.72 billion, up 36.93% compared to the same period last year, according to the US"s Department of Commerce.

Of this figure, Vietnam exported US$3.637 billion worth of products to the US, up 21.92% while US"s export turnover to Vietnam was US $1.083 billion, up 133.41%.

Vietnam"s key export products to the US include garments and textiles (with a turnover of US$1.526 billion, up 27.49%); wooden products and interior (US$435 million, up 25.1%); footwear (US$375 million, up 13.29%); seafood (US$206.7 million, up 11.7%); and agricultural products, mostly coffee and cashew nuts, (US$21.1 million, up 14.57%).

The country"s major import products from the US are transport vehicles, engineering machinery, airplanes and aviation parts and accessories, steel, plastic, cotton and cattle feed.





Vietnam targets 50Mln tons of coal by 2010


Vietnam has set a target of producing 48-50 million tons of coal by 2010, according to the Strategy for Development of the Vietnam Coal Sector by 2015, vision 2025 which was approved by the Prime Minister on July 7.

Accordingly, the domestic coal sector will become a developed industry of high competitiveness and advanced technology in the region, meeting the domestic demand and ensuring energy security.

By 2010, work on exploration and appraisal of the natural resources 300 meters down under the northeastern coal basin will be completed and by 2015, exploration and appraisal of the natural resources of the Red river delta coal basin will be finished.

The sector attaches importance to investment in modern technology with high level of automation in order to avoid the maximum mining accidents. Transport of coal by automobile vehicles is also targeted to be reduced to the maximum to reduce negative impact to the environment.

A competitive coal market will soon be established. The State will manage coal prices via tax policies and other management tools.





EAB: Bank offers door-to-door remittance forwarding service


International money transfer business MoneyGram and Eastern Asia Commercial Bank (DongA Bank) on July 8 signed a joint agreement to provide a door-to-door foreign remittance forwarding service.

The service will be carried out within 12 hours for clients in big cities and 24-36 hours for those in other localities.

MoneyGram Asia-Pacific and Southeast Asia Regional Director Nick Cunnew said the service is significant to clients, particularly the elderly. He also said that the remitters and beneficiaries are not required to pay any supplementary fees for this door-to-door service.

DongA Bank General Director Tran Phuong Binh said in the first six months of this year, a total US$631 million in foreign remittance passed through his bank. The figure was US$1 billion last year.

Listings

DDM: Dong Do Marine approved to list 8.9Mln shares


On July 8, 2008, the Ho Chi Minh City Stock Exchange (HOSE) has approved the listing of shares issued by Dong Do Marine Joint Stock Company (Dong Do Marine).

Chartered capital: VND89.2 billion
Stock symbol: DDM
Stock type: Common stock
Par value: VND10,000/share
Additional listing volume: 8,920,000 shares
Additional listing value: VND89,200,000,000.


SSI: Foreigners can own maximum 49% of bond
On July 7, 2008, the Management Board of Saigon Securities Incorporation approved Decision 12/2008/NQ-HDQT to complete regulations related to the issue of corporate bonds in Decision 14/2006/QD-HDQT made in 2006 as follows:

"Foreign investors are not allowed to own more than 49% of the total volume of the SSICB0206 bonds."

"Foreign investors are not allowed to own more than 49% of the total volume of the SSICB0306 bonds."

"Foreign investors are recommended to seek consultation of the permissible foreign ownership rate applied to each SSI"s convertible bond, available at the company"s web site, ahead of making investment in the convertible bonds."

The decision was made to ensure benefits of investors when they convert corporate bonds into common shares. At the same time, pursuant to Article 21, Decree 52/2006/ND-CP dated May 19, 2006 about the corporate bond issue, SSI must comply with the regulation "to ensure foreign ownership limit in Vietnamese businesses as stipulated in Prime Minister"s decision for certain periods."

As of 9:00 on July 7, 2008, foreign ownership rate of SSI bonds (both SSICB0206 and SSICB0306) was 22.48%.



SSI explains 10 trading sessions closing at peak prices
Saigon Securities Incorporation has given explanations to 10 consecutive trading sessions closing at the highest prices of the day from June 25 to July 8, 2008.

SSI and Daiwa Securities Group Inc signed strategic cooperation agreement.
SSI’s strategic shareholders ANZ and Daiwa Securities Group Inc registered to buy in big volumes of shares to increase holdings at SSI.
Business operations are still normal.
Trading statistics in 10 trading days

Domestic investors
Foreign investors

Buying volume (shares) % of market volume Selling volume (shares) % of market volume Buying volume (shares) % of market volume Selling (shares) % of market volume

1,071,670 40.04% 2,576,470 96.26% 1,605,030 59.96% 100,230 3.74%





BMC to list 2.36Mln additional shares from Jul 14
The Ho Chi Minh City Stock Exchange announces the listing and trading of additional shares issued by Binh Dinh Minerals Joint Stock Company (Bimico).

Listed company: Binh Dinh Minerals Joint Stock Company
Stock symbol: BMC
Stock type: Common stock
Par value: VND10,000
Additional listing volume: 2,360,520 shares (These shares are issued as bonus shares for the company’s shareholders).
Additional listing value: VND23,605,200,000
Effective listing date: July 1, 2008
Official trading date: July 14, 2008.



VPL: Appointing new deputy general director
Vinpearl Tourist and Trading Joint Stock Company (Vinpearl Land) has announced to appointed Mr. Dinh Chien Quoc the deputy general director as from June 23, 2008.

OTC & Bonds

Housing and urban development group to make debut


Housing and Urban Development Corporation (HUD) said it is prepared to become an economic group with capital of more than VND4.6 trillion (US$287.5 million).

HUD Management Board Chairman Nguyen Hiep said the plan to set up Housing and Urban Development Group, with HUD to act as a parent company, has been approved by the Government and it is awaiting the right time for its debut.

HUD currently owns 15 subsidiaries, six associate companies and two joint ventures.




HAGL: HAGL to pay 49.9% dividend in stock


Hoang Anh Gia Lai Group (HAGL) announced to pay stock dividend of 49.9% for 2007 on July 21, 2008.

The payment will be made at HAGL’s representative office in HCM City, BIDV Securities Co. Ltd in Hanoi and HAGL’s head office in the highland central province of Gia Lai.

The company has sent the first listing registration document to list 119,956,388 shares on the Ho Chi Minh City Stock Exchange.

Last year, it reported to make a pretax profit of VND870 billion (US$54.37 million), 45% higher than the initial plan thanks to good performances of the real estate market.

The group, which now has a chartered capital of VND1.2 trillion, targets at an impressive pretax profit of VND2,500 billion this year.

HAGL hopes to raise its net asset value to VND25,576 billion by the end of 2008, much higher than the amount it forecasted in early 2007 at VND11,600 billion.