Chủ đề: 28 July Vietnam Finance & Stock Market Overview

Vietnam Stock Market Overview

Jul 28: VN-Index rebounds after six-day fall

Jul 28: HASTC-Index rises fast in new week"s first session

BBT: Bach Tuyet Cotton case raises serious trust issues

Experts bet on market performance

US Trade Agency continues assistance to Hanoi Bourse

MMC becomes 146th of HASTC

Vien Dong Securities Company starts operation on July 29


Banking, Finance & Economics

Monetary market remains stable after petrol price hike

Trade deficit rises to over US$15 Bln

Vietnam adds digit to meet rising phone demand

Gem, gold and jewelry exports rise


Listings

KHA announces resolution of the Board of Directors

POT: Postef to float 1.44Mln additional shares on Aug 1

FPT: Partnership gets FPT moving A-SAP

VTB: Sony shuts down factory under new WTO rules

CSG: Saigon Cable reels in high profits

TAC: Appointing general managing director


OTC & Bonds


TienPhongBank licensed for Forex service

TCB: Techcombank pledges sufficient foreign currency supply

WB: Western Bank earns VND57.6 Bln pretax profit in six months

PNB: UOB to up Southern Bank stake

IDG pledges U$$500 Mln to Vietnam

EIB: VietinBank lowers lending interest rate

Vietnam Stock Market Overview


Jul 28: VN-Index rebounds after six-day fall


The index of Ho Chi Minh City Stock Exchange (HOSE) closed higher on July 28, ending a six-session period of decline.

The VN-Index gained 5.18 points, or 1.21% at 434.64.

The trading volume increased 50% from the previous session to 13.39 million shares today, and trading value went up 18% to VND387.6 billion.

The market sees 85 stocks close up, 65 down and 5 unchanged, including a new stock.

Incomfish (ICF) and Safoco (SAF) are the biggest gainers, both rising 3%, followed by Ry Ninh Power (RHC) and Seafood No.1 (SJ1) rising 2.99%.

Pha Lai Thermoelectricity (PPC) is among the most gainers, advancing 2.92% at VND28,200. It has strong volume of more than 600,000 shares matching orders.

Sacombank (STB) is the most active stock with 3.25 million shares traded. STB rose 2.68% at VND23,000.

Vitaco (VTO) ranked second with nearly 960,000 shares, but it fell 1.24% at VND15,900.

Thu Duc House is the worst performer, falling 3% at VND48,500.

The market today welcomed the 155th corporate stock namely Construction and Material Trading Co. (CNT). This symbol closed at VND36,000 after trading 1,420 shares.

Among four fund certificates, one closed up and three closed down. They had 1.16 million units traded worth VND10.5 billion.





Jul 28: HASTC-Index rises fast in new week"s first session

The index of Hanoi Securities Trading Center (HASTC) bounds back on July 28 after falling in six consecutive sessions.

The HASTC-Index rose 3.74 points, or 2.66% at 144.59.

The trading volume doubled from last Friday to 9.4 million shares today and trading value increased 63% to VND305.4 billion today.

Statistics show that 43 stocks went up, 91 down and 12 unchanged.

The giant Kinh Bac (KBC) continued to be the most advancer, rising 3.97% at VND149,100 with 102,900 shares matching order.

Yen Son Paper (YSC) rose at the same pace to VND36,700 with only 100 shares traded.

PetroVietnam Technical Service (PVS) jumped up 3.54% at VND43,900 with 481,100 shares, ranking fifth among the active.

Pan Pacific (PAN) ranked fourth with 500,100 shares. It rose 1.28% at VND39,600.

Three most active fell down. Asia Commercial Bank (ACB) fell 0.67% at VND59,100 on 1.9 million shares traded, Kim Long Securities (KLS) lost 2.4% at VND12,200 with 1.2 million shares, and Thac Ba Hydropower (TBC) down 1.575 at VND12,500 with 545,600.

Company 482 (B82), Danang Education Book (DAE), and Thach Cao Cement (TMC) are the biggest losers, all falling 4%.

Mangan Mineral (MMC) debuted at VND59,600 on 116,300 shares.






BBT: Bach Tuyet Cotton case raises serious trust issues


On July 10, 2008, the HOSE issued an urgent dispatch, putting a temporary halt on BBT transactions from the next day due to the listed company’s loss-making operations during 2006 and 2007.

BBT is the second listed company to have its shares temporarily halted from trading in the local stock market’s history, after Binh Trieu Mechanics Joint Stock Company (ticker: BTC). In BBT’s audited 2006 and the 2007 financial reports submitted and publicized on HOSE’s website, the company showed a positive profit for both years. However, the audited financial report finalized by the auditing firm AISC for BBT on July 2, 2008 showed a negative profit for both 2007 and 2006. [The company made losses in other words].

Many important variables constituting the subsequent profit figures, which were previously excluded from the auditing report, were changed substantially after being retroacted and readjusted by the auditors. Consequently, BBT’s pre-tax profit for 2006 was readjusted from VND2.428 billion to minus [i.e. a loss of] VND8.317 billion. Similarly, earnings per share (EPS) was changed from VND330 to minus VND1,241. So what does it all imply to the involved parties?

For BBT’s creditors, the company’s financial and audited financial reports are the basis for evaluating the company’s performance. With such an audited financial report for 2006 where crucial variables were excluded, the company’s business results might be incorrectly reflected, leading to creditors’ improper lending decisions. As a consequence, the creditors are left exposed to potential credit risks and non-performing loans, negatively affecting the banking and finance sector. With the banking and finance sector being the economy’s backbone, such impacts on the macroeconomy are not inconsiderable at all.

For the auditing firm, under current regulations, an auditing report can be made with some variables excluded. The auditors have the right to accept parts of the financial report in cases they believe the exclusions do not affect the auditing report’s reliability and reasonability. BBT’s audited 2006 financial report was treated this way, and the auditors stated: “We have planned and finalized the auditing in order to reach the reasonable assurance that the financial reports do not contain crucial mistakes.

” Given that, it is hard to say the auditing firm has fulfilled its responsibilities considering almost all of the exclusions may lead to an incorrect report of the listed company’s business results which showed a false profit. The retroaction of the excluded variables clearly shows the mistakes contained in the financial report were crucial. Such exclusions obviously affect the auditing firm’s reputation and erode investors’ trust in the credibility of auditing reports.

BBT’s management, with financial reports containing such exclusions, was not provided with adequate information to make proper investment decisions. Particularly, bearing in mind that the company’s 2007 shareholder assembly’s plan to issue 2.16 million new shares to increase its chartered capital has not been actualised and BBT’s management board’s new proposal to issue another batch of 8.16 million new shares, the listed firm has to publicize transparent audited financial reports without so many excluded variables in two consecutive years.

The management’s move to retroact and clarify the excluded variables in the audited 2006 financial report, can be seen as a bold move showing its determination to gain back investors’ confidence. For the stock market authorities, specifically the Ministry of Finance and the HOSE, they have the right and responsibility to request the listed company to provide correct information to ensure transparent information for investors.

In BBT’s case, HOSE should execute its rights and request the company to submit a more transparent financial report when the authority received the audited 2006 financial report in February 2007, which contained many excluded variables, rather than waiting for one-and-a-half years to ask the company to explain and issue a temporary trading halt decision.

For investors, they are left exposed to the highest risks since not everyone is able to read a company’s financial report. Also not every investor can adequately evaluate the significance of the exclusions in auditors’ reports. Even if someone can comprehend the auditors’ reports, they are not adequately informed to assess the company’s operations given those exclusions.

The retroaction of a financial report which leads to a much different report of the company’s business results has raised doubts among investors about the quality of audited financial reports publicised by other listed companies. A question may arise: how many audited financial reports announced by the more than 300 companies listed on both HOSE and the Hanoi Securities Trading Center face the same problem?





Experts bet on market performance


While the domestic stock market has shown some resilience, investors seem to be divided on investment goals and opportunities in the coming months, as the economy is still facing difficulties ahead, especially inflation.


Many questions were raised at an on-line conference held by Dau tu Chung khoan (Securities Investment) Newspaper at .:TIN NHANH CHUNG KHOAN: Cong thong tin Kinh te - Tai chinh - Chung khoan hang dau Viet Nam :..


The Vietnamese stock market over the past two years has shown day traders benefiting, and long-term investors losing. Do you think that long-term investors have opportunities here?


Lam Minh Chanh, director of Dai Viet Securities


It’s correct that over the past two years have brought more profit to short-term investors. Long-term investors have gone through a lot of trials. When the market went up, instead of holding on to their shares, they sold their shares for profit (as a result of the greedy psychology).


In order for long-term investors to profit, they must follow certain conditions: The market must be more effective with moderate ups and downs, not huge fluctuations as present. Investors must commit their money for the long term, assess correctly the value of shares they invest in and reorganize their portfolios when the market witnesses sudden changes.


One thing I want to share is that in a developed market, long-term investment is more profitable than short-term investment.


Many local and overseas financial institutions released different reports on the development of the Vietnamese stock market, as well predictions of the VN-Index’s standing. What do you think about them?


Pham Duc Long, deputy director of Wall Street Securities


Reports are all subjective because different analysts give different views on the same subject. Each person will have his or her own method to do the analysis, and each report will have a different view from different analysts.


Lam Minh Chanh

Predictions are still just predictions. I personally think that the VN-Index, the benchmark index of the Vietnamese stock market, is governed mainly by investor psychology.

Meanwhile, investors easily change their minds when they see surrounding factors change, including the economic situation, daily expenses, or the ups and downs of other investment channels like gold or property.

Then it’s hard to make a prediction on the standing of the VN-Index as the Vietnamese stock exchange is still young and developing.

Can you make any predictions on the VN-Index in particular, and on the stock market’s development in general?


Vo Huu Tuan, deputy director of Bao Viet Securities

The rising petroleum price in the local market has not temporarily impacted to CPI (Consumer Pricing Index), the key measure weighing inflation. It will, more or less, cause the increase of input costs for enterprises, including listed firms.


However, the biggest market-capitalized companies will see minimal impacts. Therefore, the stock market, which is mainly driven by large firms, will not look too bad.


Lam Minh Chanh

In response to the question, I personally predict that the VN-Index could reach around 500 to 600 points by the end of this year.

I bet 55% on my own prediction, 30% it will be better, and 15% is will be worse.


Le Ho Khoi, director of Trang An Securities

In my own opinion, the stock market will go down even further. Then I forecast the VN-Index will stand at 350 points. However, the prediction is just my own opinion, and I think that it’s hard to make any predictions on the VN-Index.






US Trade Agency continues assistance to Hanoi Bourse


The US Trade and Development Agency (USTDA) will continue helping the Hanoi Trading Securities Center (HaSTC) to develop, the agency announced at a recent meeting with the center.

The agency pledged an additional US$56,000 to expand the "Feasibility Project on HaSTC development" that ended in 2007. The Finance Ministry will work with the agency on the project.

The expanded project, expected to be finalized in March 2009, will include setting up a bidding contract and constructing technical referential clauses.

The feasibility study that the agency conducted in the northern market last year helped build a modern and effective trading system. The project cost a total of US$422,000.

An official from the Hanoi center said that the feasibility study helped reduce errors during trading, thanks to an advanced technical system.

"The expanded project will help upgrade the system, making trading more smooth. As a result, the northern bourse will draw more capital from both domestic and overseas sources," he added.

At present, the center is running two other markets besides listed shares trading, including a Government bond trading market, and an over-the-counter market (OTC).

Larry Walther, representative of USTDA, pledged to conduct further research to provide technical assistance to the Hanoi bourse, helping it conduct all kinds of trading yesterday.





MMC becomes 146th of HASTC


Mangan Mineral Company (MMC) becomes the 146th stock of the Hanoi Securities Trading Center (HASTC) after it listed on the bourse on July 28.


MMC listed all of 1.2 million shares on the center. The stock was averaged at VND59,600 with 116,300 shares traded. Its highest price was VND68,000 and lowest price VND36,000.


The company has chartered capital of VND12 billion, involved in exploring and processing manganese.






Vien Dong Securities Company starts operation on July 29


Vien Dong Securities Company (VDSC) will be inaugurated in Ho Chi Minh City from July 29.


VDSC was licensed in February 1, 2008 with initial registered capital of VND135 billion. Its foundation shareholder is Vien Dong Assurance Company (VASS) and the strategic partner is the 21st Century Company.


The company provides services such as transaction of listed stocks, OTC stocks, brokerage, consulting…