Having the total capitalisation volume of VND120tril ($7.5bil), six share items, SJS, STB, FPT, VNM, PPC, and PVD, now account for one-third of the total listing market capitalisation.
Domestic and foreign investors always refer to the prices of the six blue chips when making investment decisions, considering these the barometer of the stock market.
Several days ago, foreign investors were given an unexpected gift: as the securities depository centre made a mistake in defining the foreign ownership ratio in Sacombank, foreign investors could freely purchase many more Sacombank shares. Though the depository centre announced its mistake, foreign investors decided not to sell Sacombank shares in order to reduce the foreign ownership ratio to 30% as required. The event shows the big attractiveness of Sacombank shares (STB).
In the last trading sessions, STB has led the market in transaction volume. However, as the market remains quiet, STB’s price did not increase, selling at VND53,000/share on August 28.
According to Bui Ngoc Tuoc, a securities expert, though STB has high liquidity and low P/E index, it has several shortcomings that may worry investors.
First, STB have been listed in the largest quantity on the market with listed 442mil, many of which have been additionally issued, and at the moments when the demand was lower than supply.
Second, STB has witnessed a lot of changes in staff, while members of management board and their relatives have continuously sold STB recently.
Third, investors still want to keep the ‘wait-and-see’ attitude as they want to know how Sacombank will perform when many foreign banks enter the market and more local banks are set up.
Mr Tuoc said that if the shortcomings could be fixed, STB would still deserve to be listed among investors’ portfolios.
Once the hottest share item on the bourse, SJS has surrendered its first position to another item though it remains influential. When Song Da Corporation (the parent group of SJS) sold 6mil SJS shares, big doubts were left among investors.
Vu Chi Tung, an investor on SSI trading floor, said that this was one of the factors that had prompted him and other investors not to keep SJS any more. “Song Da would not have sold SJS in large quantities if SJS had been actually promising,” he said.
The director of a securities company said that SJS would have difficulty retaining its previous position as the real estate boom was over. Meanwhile, several other real estate firms, which also have big competitiveness, are also going to make IPOs or list on the bourse.
The director said that the actual value of SJS would be somewhere between VND200-250,000/share. If the real estate market does not witness a new price fever, and the company does not have business plans which promise fat profit, SJS will not be able to return to the over VND300,000/share level.
Recently, Vinamilk (VNM) has revealed its intention of listing on a foreign bourse. Together with STB, VNM is a big name among the six blue chips most wanted by investors. If the government approves the raising of foreign ownership ratio, and VNM lists on foreign bourses, VNM price will skyrocket. However, there is always a big gap between expectations and reality.
FPT prices slid dramatically recently from their highest peak. Three reasons have been cited to explain the sharp price decreases 1. bad rumours about FPT, which were not addressed timely 2. TPG registered to sell a large quantity of FPT 3. Two members of FPT registered to sell a large volume of FPT also at that time. Whether FPT prices can recover in the time to come will depend on many factors, while FPT’s management board has committed not to sell shares until the year’s end.
PPC, though having the lowest P/E index among the group of six (less than 17), has the lowest price level, at VND52,500/share.
The paradox has been explained by Electricity Engineer Tran Vinh Nghi: outdated equipment and low management skills both make PPC’s value low.
Meanwhile, PVD has overly high P/E (over 74), while the new projects of the company have not shown efficiency; therefore, investors dare not inject mooney in PVD. Moreover, if wanting to make investment in oil and gas companies, investors will have more choices in the near future, when more oil and gas enterprises are equitised.
Showing posts with label HoSTC. Show all posts
Showing posts with label HoSTC. Show all posts
Friday, August 31, 2007
Monday, August 20, 2007
Vincom to list on HCM City Stock Exchange
Vincom has received regulatory approval to list 80 million shares on the Ho Chi Minh City Stock Exchange, raising its charter capital from 600 billion VND (37.5 million USD) to 800 billion VND.
The company predicts 2007 revenue will reach 220 billion VND, with profit at about 127 billion VND.
Vincom has also received the go ahead to expand into golf course construction and entertainment services.
Source: VNA
The company predicts 2007 revenue will reach 220 billion VND, with profit at about 127 billion VND.
Vincom has also received the go ahead to expand into golf course construction and entertainment services.
Source: VNA
Friday, July 27, 2007
New matching scheme: everything ready, worries exist
Securities companies and the HCM City Securities Trading Centre (HSTC) have announced they are ready for the real-time order matching scheme, but still have worries.
After three delays, the real-time order matching scheme will officially be applied as of July 30, 2007, and no further delays will occur.
According to HSTC, the rehearsal was very satisfactory, while 48 securities companies said they were ready for the application of the new scheme.
Le Hai Tra, Deputy Director HSTC, said that everything proved to be okay and the trading centre had got permission from the State Securities Commission (SSC) to apply the real-time order matching scheme.
However, the securities companies which have announced their readiness said that worries existed and they could not ensure that no troubles would occur.
The director of a securities company said that the biggest problem was that there would be a break between the order-matching turns, while transaction staffs had to immediately announce order matching results to investors so that they could consider placing other orders.
Previously, transaction staffs of securities companies had half an hour between order-matching turns (there were three order matching turns every trading session) to inform investors about the results. Meanwhile, with the new scheme, the staffs will have several minutes only to do that.
HSTC has helped securities companies to install software that allows investors to immediately see the results transmitted from HSTC. The software is believed will help provide information for investors; however, according to the director, troubles may still occur if the transmission of information has problems.
Additionally, though the operations at trading centres have been automated, many works still need to be done manually. Therefore, securities companies will have to have more staffs in charge of answering investors directly during transactions.
Nguyen Anh Tuan, Deputy Director General of Bien Viet Securities Company (VSSC), said that his biggest worry was difficulty in transmitting information to investors.
Most securities companies now provide information to investors through two channels: Internet and SMS messages.
Mr Tra from HSTC said that HSTC would reconsider the membership status of securities companies which could not apply the real-time order matching scheme well.
He also said that HSTC planned to set up strict requirements on securities companies which would certainly be higher than the currently applied requirements, especially regarding technical facilities.
Mr Tra said that when HSTC begins to operate as stock exchange, listing companies must have the chartered capital of at least VND80bil ($5mil); therefore, it would be reasonable to ask securities companies to upgrade their facilities and skills. However, Mr Tra said that the companies would be given more time to get adapted to the new requirements and circumstances.
Source: VNE
After three delays, the real-time order matching scheme will officially be applied as of July 30, 2007, and no further delays will occur.
According to HSTC, the rehearsal was very satisfactory, while 48 securities companies said they were ready for the application of the new scheme.
Le Hai Tra, Deputy Director HSTC, said that everything proved to be okay and the trading centre had got permission from the State Securities Commission (SSC) to apply the real-time order matching scheme.
However, the securities companies which have announced their readiness said that worries existed and they could not ensure that no troubles would occur.
The director of a securities company said that the biggest problem was that there would be a break between the order-matching turns, while transaction staffs had to immediately announce order matching results to investors so that they could consider placing other orders.
Previously, transaction staffs of securities companies had half an hour between order-matching turns (there were three order matching turns every trading session) to inform investors about the results. Meanwhile, with the new scheme, the staffs will have several minutes only to do that.
HSTC has helped securities companies to install software that allows investors to immediately see the results transmitted from HSTC. The software is believed will help provide information for investors; however, according to the director, troubles may still occur if the transmission of information has problems.
Additionally, though the operations at trading centres have been automated, many works still need to be done manually. Therefore, securities companies will have to have more staffs in charge of answering investors directly during transactions.
Nguyen Anh Tuan, Deputy Director General of Bien Viet Securities Company (VSSC), said that his biggest worry was difficulty in transmitting information to investors.
Most securities companies now provide information to investors through two channels: Internet and SMS messages.
Mr Tra from HSTC said that HSTC would reconsider the membership status of securities companies which could not apply the real-time order matching scheme well.
He also said that HSTC planned to set up strict requirements on securities companies which would certainly be higher than the currently applied requirements, especially regarding technical facilities.
Mr Tra said that when HSTC begins to operate as stock exchange, listing companies must have the chartered capital of at least VND80bil ($5mil); therefore, it would be reasonable to ask securities companies to upgrade their facilities and skills. However, Mr Tra said that the companies would be given more time to get adapted to the new requirements and circumstances.
Source: VNE
HOSE - Ho Chi Minh City’s new stock market
The Ho Chi Minh City Securities Trading Center – Asia’s hottest stock exchange last year – is scheduled to transform itself into the HCMC Stock Exchange (HOSE) on August 8.
Following a decision approved by Vietnamese Prime Minister Nguyen Tan Dung in May, HOSE will organize transactions for eligible listed companies and have the power to issue listing licenses.
The limited liability state company will have a chartered capital of VND1 trillion (US$63 million) and will perform many of the duties currently carried out by the State Securities Commission (SSC).
Companies expecting to trade shares on the stock market will have to submit applications to the HOSE instead of the SSC.
HOSE will be Vietnam’s most advanced stock market platform yet and will list only big corporations. The company will go public by 2010.
A clear and detailed agenda will be mapped out to create a modern stock market capable of linking with other regional markets.
The HCMC market is home to 109 listed stocks, including two funds and more than 40 brokerage firms.
Stock market capitalization is forecast to hit US$30-40 billion by 2010, accounting for between 30 and 40 percent of the country’s gross domestic product (GDP), according to SSC.
Source: Thanh Nien
Following a decision approved by Vietnamese Prime Minister Nguyen Tan Dung in May, HOSE will organize transactions for eligible listed companies and have the power to issue listing licenses.
The limited liability state company will have a chartered capital of VND1 trillion (US$63 million) and will perform many of the duties currently carried out by the State Securities Commission (SSC).
Companies expecting to trade shares on the stock market will have to submit applications to the HOSE instead of the SSC.
HOSE will be Vietnam’s most advanced stock market platform yet and will list only big corporations. The company will go public by 2010.
A clear and detailed agenda will be mapped out to create a modern stock market capable of linking with other regional markets.
The HCMC market is home to 109 listed stocks, including two funds and more than 40 brokerage firms.
Stock market capitalization is forecast to hit US$30-40 billion by 2010, accounting for between 30 and 40 percent of the country’s gross domestic product (GDP), according to SSC.
Source: Thanh Nien
Thursday, July 26, 2007
At 7-year mark, stock market on right track
The stock market has been developing on the right track, especially in the last few years, when the market has witnessed great advances in development.
According to the State Securities Commission (SSC), by the end of June 2007, 243,809 transaction accounts had been opened, up by 2.3 times compared to December 2006 (106.393), including 242,624 accounts of individual investors and 1,185 accounts of institutional investors.
With open regulations released recently foreign investors have more opportunities to join the market. Now foreign investors can hold up to 49% of total listed shares. Foreign securities trading institutions are allowed to make capital contributions and buy shares of up to 49% of chartered capital to form joint ventures. Foreign investors can hold up to 30% of local banks’ shares.
To date, foreign investors have opened 5,568 transaction accounts (5,353 individual accounts and 215 institutional accounts). Some 260 foreign investment funds are injecting money in Vietnam’s stocks with the total estimated value of investment portfolio reaching $5bil. The accounts opened by Japanese investors account for 70% of total foreign investors’ accounts.
The proportion of shares held by foreign investors in big local companies, such as ACB, STB, BT6, or AGF, has nearly hit the ceiling. Officials from the Market Development Division under SSC said that if Vietnam could offer high-quality commodities it could attract a huge quantity of capital from the outside, which will help stimulate the national economy.
The most important tasks for SSC in the time to come are to stimulate demand, build and make public the roadmap on market opening to foreign investors. The regulation on foreign ownership in conditional investment fields must come in line with the regulations stipulated in the Investment Law and in international treaties of which Vietnam is a member.
On August 8, 2007, in HCM City, there will be the ceremony announcing the Prime Minister’s decision on shifting the HCM City Securities Trading Centre (HSTC) into the HCM City Stock Exchange (HOSE).
According to Decision No 599 dated May 11, 2007, HOSE is a state-owned legal entity, operating under the mode of a one-member limited company, and is covered by the Securities Law, Enterprise Law, the regulations for the stock exchange and other related laws.
HOSE has the total chartered capital of VND1tril ($62.5mil), sourced from the initially allocated capital by the state to HSTC now transferred to HOSE, the additional capital to be provided by the state during the operation, the additional capital from post-tax profit, and other legal sources.
Source: VNE
According to the State Securities Commission (SSC), by the end of June 2007, 243,809 transaction accounts had been opened, up by 2.3 times compared to December 2006 (106.393), including 242,624 accounts of individual investors and 1,185 accounts of institutional investors.
With open regulations released recently foreign investors have more opportunities to join the market. Now foreign investors can hold up to 49% of total listed shares. Foreign securities trading institutions are allowed to make capital contributions and buy shares of up to 49% of chartered capital to form joint ventures. Foreign investors can hold up to 30% of local banks’ shares.
To date, foreign investors have opened 5,568 transaction accounts (5,353 individual accounts and 215 institutional accounts). Some 260 foreign investment funds are injecting money in Vietnam’s stocks with the total estimated value of investment portfolio reaching $5bil. The accounts opened by Japanese investors account for 70% of total foreign investors’ accounts.
The proportion of shares held by foreign investors in big local companies, such as ACB, STB, BT6, or AGF, has nearly hit the ceiling. Officials from the Market Development Division under SSC said that if Vietnam could offer high-quality commodities it could attract a huge quantity of capital from the outside, which will help stimulate the national economy.
The most important tasks for SSC in the time to come are to stimulate demand, build and make public the roadmap on market opening to foreign investors. The regulation on foreign ownership in conditional investment fields must come in line with the regulations stipulated in the Investment Law and in international treaties of which Vietnam is a member.
On August 8, 2007, in HCM City, there will be the ceremony announcing the Prime Minister’s decision on shifting the HCM City Securities Trading Centre (HSTC) into the HCM City Stock Exchange (HOSE).
According to Decision No 599 dated May 11, 2007, HOSE is a state-owned legal entity, operating under the mode of a one-member limited company, and is covered by the Securities Law, Enterprise Law, the regulations for the stock exchange and other related laws.
HOSE has the total chartered capital of VND1tril ($62.5mil), sourced from the initially allocated capital by the state to HSTC now transferred to HOSE, the additional capital to be provided by the state during the operation, the additional capital from post-tax profit, and other legal sources.
Source: VNE
Wednesday, July 25, 2007
SSI to move listing from Hanoi to HCMC
Vietnam's largest brokerage, Saigon Securities Inc. (SSI), said on Wednesday it would seek permission to shift its share listing to the Ho Chi Minh Stock Exchange from the Hanoi market.
Executive Director Nguyen Hong Nam said in a statement the Ho Chi Minh City-based SSI would submit an application by August 5 and list all its 80 million shares on the main exchange after a licence is in place.
He did not give a reason for the move, but companies find the Ho Chi Minh exchange more attractive due to its greater liquidity partly due to the listing of major stocks such as Vinamilk, FPT and Sacombank on the exchange.
On Wednesday, the total value of shares traded in the Ho Chi Minh City market hit $31.5 million, compared with just $4.9 million in the Hanoi market.
Analysts said many companies launched their initial listings last year on the Hanoi market -- where listing rules are less stringent -- to test market sentiment about their stocks, and also to take advantage of corporate tax relief for listed firms which expired on Dec. 31, 2006.
The Hanoi market now trades in 87 stocks, including SSI, with a total capitalisation of $5 billion, while the Ho Chi Minh market has 109 listed firms with a capitalisation of nearly $13 billion.
SSI, which underwrites share and debt issues and advises state-run companies on privatisation, is one of more than 50 companies offering such services in Hanoi and Ho Chi Minh City.
The State Securities Commission said about two dozen more brokerages were seeking operating licences in Vietnam's capital.
The Australia and New Zealand Banking Group Ltd. has a 10 percent stake in SSI while Japan's Daiwa Securities Group Incorporation has a 1.25 percent stake.
SSI said it posted a record net profit of 668.5 billion dong ($41 million) in the first six months of this year, more than four times its annual earnings last year.
Shares in the brokerage gained 0.32 percent to close at 156,500 dong ($9.7) on Wednesday on the over-the-counter Hanoi market.
Source: Reuters
Executive Director Nguyen Hong Nam said in a statement the Ho Chi Minh City-based SSI would submit an application by August 5 and list all its 80 million shares on the main exchange after a licence is in place.
He did not give a reason for the move, but companies find the Ho Chi Minh exchange more attractive due to its greater liquidity partly due to the listing of major stocks such as Vinamilk, FPT and Sacombank on the exchange.
On Wednesday, the total value of shares traded in the Ho Chi Minh City market hit $31.5 million, compared with just $4.9 million in the Hanoi market.
Analysts said many companies launched their initial listings last year on the Hanoi market -- where listing rules are less stringent -- to test market sentiment about their stocks, and also to take advantage of corporate tax relief for listed firms which expired on Dec. 31, 2006.
The Hanoi market now trades in 87 stocks, including SSI, with a total capitalisation of $5 billion, while the Ho Chi Minh market has 109 listed firms with a capitalisation of nearly $13 billion.
SSI, which underwrites share and debt issues and advises state-run companies on privatisation, is one of more than 50 companies offering such services in Hanoi and Ho Chi Minh City.
The State Securities Commission said about two dozen more brokerages were seeking operating licences in Vietnam's capital.
The Australia and New Zealand Banking Group Ltd. has a 10 percent stake in SSI while Japan's Daiwa Securities Group Incorporation has a 1.25 percent stake.
SSI said it posted a record net profit of 668.5 billion dong ($41 million) in the first six months of this year, more than four times its annual earnings last year.
Shares in the brokerage gained 0.32 percent to close at 156,500 dong ($9.7) on Wednesday on the over-the-counter Hanoi market.
Source: Reuters
Sudico to raise $87 mln through share issue
Vietnam’s leading construction group Sudico is expected to raise at least VND60 billion (US$87 million) through an auction of six million shares next month to raise funds for property projects. Sudico, formally known as Song Da Urban and Industrial Zone Investment and Development Company, has set a reserve price of VND235,000 ($14.5) for the auction on August 10 at the Ho Chi Minh City Securities Trading Center.
The HCMC-listed Sudico (SJS) closed up 3.7 percent Tuesday at VND280,000.
The Hanoi-based company had a chartered capital of VND200 billion ($12.4 million) as of March 12.
Of this figure the state holds 51 percent, its staff 5.21 percent, and outsiders 43.79 percent [including 19.11 percent by foreign investors].
Over 95 percent of the company’s revenues come from construction of apartments and urban areas.
This year it has projected a turnover of VND606 billion ($37.9 million) and profits of VND262 billion ($16.4 million).
The builder earned its revenue of VND351.5 billion ($22 million) last year and more than VND142 billion ($8.9 million) in net profits. The company paid shareholders a dividend of 20 per cent last year.
It has planned to branch out into tourism and insurance services from the core business of construction and to set up new arms to manage its expanded projects nationwide this year.
Projects under construction
Sudico has invested nearly VND1.6 trillion in several mammoth projects in mainly the Northern provinces.
Top of the list is Tien Xuan - Hoa Binh Urban Zone at a total cost of VND1.9 trillion in the Hoa Binh province.
Work kicked off on the project in earlier this year and is expected to complete in 2016.
In the province the company is building Bac Residential Area in the Hoa Binh township, at a cost of VND148 billion investment. Works are set to complete in next March.
The second largest one is the New Urban South An Khanh project at a total capital of VND1.4 trillion in the Ha Tay province, some 30 km from the Hanoi capital.
Construction of the project on a 312 ha site is expected to complete in third quarter 2014. The end of the third quarter this year will see a part of the project coming online.
The 240 sq.m-project is designed to include villa groups and apartment buildings for sales.
The Song Da – Ngoc Vung Ecotourism Zone is under construction in the island Van Don district, Quang Ninh Province.
The 39ha-ecotourism project worth VND248 trillion is set to launch services in August next year.
Its four-star hotel and villa project in the province will come in full service in 2010.
The company is expected to put its VND287 billion-invested My Dinh – Me Tri Urban Area in the capital into full operation in the next two months.
Source: Thanh Nien
The HCMC-listed Sudico (SJS) closed up 3.7 percent Tuesday at VND280,000.
The Hanoi-based company had a chartered capital of VND200 billion ($12.4 million) as of March 12.
Of this figure the state holds 51 percent, its staff 5.21 percent, and outsiders 43.79 percent [including 19.11 percent by foreign investors].
Over 95 percent of the company’s revenues come from construction of apartments and urban areas.
This year it has projected a turnover of VND606 billion ($37.9 million) and profits of VND262 billion ($16.4 million).
The builder earned its revenue of VND351.5 billion ($22 million) last year and more than VND142 billion ($8.9 million) in net profits. The company paid shareholders a dividend of 20 per cent last year.
It has planned to branch out into tourism and insurance services from the core business of construction and to set up new arms to manage its expanded projects nationwide this year.
Projects under construction
Sudico has invested nearly VND1.6 trillion in several mammoth projects in mainly the Northern provinces.
Top of the list is Tien Xuan - Hoa Binh Urban Zone at a total cost of VND1.9 trillion in the Hoa Binh province.
Work kicked off on the project in earlier this year and is expected to complete in 2016.
In the province the company is building Bac Residential Area in the Hoa Binh township, at a cost of VND148 billion investment. Works are set to complete in next March.
The second largest one is the New Urban South An Khanh project at a total capital of VND1.4 trillion in the Ha Tay province, some 30 km from the Hanoi capital.
Construction of the project on a 312 ha site is expected to complete in third quarter 2014. The end of the third quarter this year will see a part of the project coming online.
The 240 sq.m-project is designed to include villa groups and apartment buildings for sales.
The Song Da – Ngoc Vung Ecotourism Zone is under construction in the island Van Don district, Quang Ninh Province.
The 39ha-ecotourism project worth VND248 trillion is set to launch services in August next year.
Its four-star hotel and villa project in the province will come in full service in 2010.
The company is expected to put its VND287 billion-invested My Dinh – Me Tri Urban Area in the capital into full operation in the next two months.
Source: Thanh Nien
Friday, July 20, 2007
Casino delays IPO to August
The Taiwan-backed operator of Vietnam's biggest casino said on Thursday it had delayed its initial public offering to next month due to procedural problems in its application to list on the Ho Chi Minh Stock Exchange.
Royal International Corp, which runs the casino in Halong Bay, had applied to sell 8 million shares, or about 23 percent of the company, on the exchange on July 20 to raise about $100 million for expansion.
"We had some problems with the listing paperwork, but that has been resolved now and we should receive our IPO and listing licence early next week," Tran Trong Nghia, head of the equity department, told Reuters.
The new schedule for the IPO and listing should be the first week of August," Nghia added.
The firm has said it expected the shares to sell for about 200,000 dong ($12.4) each in the IPO, or 20 times their face value of 10,000 dong.
The company, which also operates 130 luxury villas in the UNESCO-Heritage Halong Bay, has contracts with U.S. hotel operator Starwood Hotels & Resorts to manage two newly built hotels in Halong City.
Vietnam is encouraging investors to build high-end hotels, resorts and golf courses to help sustain a boom in tourism, particularly from South Korea and China.
Foreign investment in the tourism sector has reached around $700 million so far this year, mostly in hotels and golf courses.
Casinos in Vietnam are allowed to cater only to foreign tourists as gambling is banned.
Source: Reuters
Royal International Corp, which runs the casino in Halong Bay, had applied to sell 8 million shares, or about 23 percent of the company, on the exchange on July 20 to raise about $100 million for expansion.
"We had some problems with the listing paperwork, but that has been resolved now and we should receive our IPO and listing licence early next week," Tran Trong Nghia, head of the equity department, told Reuters.
The new schedule for the IPO and listing should be the first week of August," Nghia added.
The firm has said it expected the shares to sell for about 200,000 dong ($12.4) each in the IPO, or 20 times their face value of 10,000 dong.
The company, which also operates 130 luxury villas in the UNESCO-Heritage Halong Bay, has contracts with U.S. hotel operator Starwood Hotels & Resorts to manage two newly built hotels in Halong City.
Vietnam is encouraging investors to build high-end hotels, resorts and golf courses to help sustain a boom in tourism, particularly from South Korea and China.
Foreign investment in the tourism sector has reached around $700 million so far this year, mostly in hotels and golf courses.
Casinos in Vietnam are allowed to cater only to foreign tourists as gambling is banned.
Source: Reuters
Wednesday, July 18, 2007
TANIRUCO plans share debut on July 24
Vietnam's Tay Ninh Rubber Company (Taniruco) plans to start trading shares on the Ho Chi Minh Stock Exchange next week after securing a listing licence, a company source said on Wednesday.
"We have proposed July 24 as the starting date and are now in the process of getting the exchange's approval," the source said a day after the exchange licensed Taniruco to list all its 30 million shares.
Taniruco, valued at $240 million on the unofficial markets, would be the second new firm to list on the country's main stock exchange this year. Thuan An Wood Processing Co., a subsidiary of top rubber firm Vietnam Rubber Group, is due to list on Monday.
In January, Pha Lai Power Co (PPC) moved its listing top Ho Chi Minh City from the over-the-counter Hanoi stock market.
Taniruco, based in the southern province of Tay Ninh, is a small rubber exporter, shipping 14,000 tonnes of the 708,000 tonnes exported last year from Vietnam, the fourth-largest rubber exporter after Thailand, Indonesia and Malaysia.
Its shares last traded at around 130,000 dong ($8) on the unregulated, unofficial markets, valuing the company at $240 million.
Taniruco reported its net profit jumped 50.5 percent to 143 billion dong ($8.8 million) last year from 2005 .
It expects a 40 percent rise in 2007 net profit to 200 billion dong and reported a net profit of 45.6 billion dong ($2.8 million) in the first quarter.
In December, the firm raised about $36 million in an initial public offering of nearly 8.4 million state shares which sold at an average price of 68,341 dong ($4.2).
Last month, a company official said Taniruco was finalising plans to grow 10,000 hectares (24,700 acres) of rubber in Cambodia next year.
Source: Reuters
"We have proposed July 24 as the starting date and are now in the process of getting the exchange's approval," the source said a day after the exchange licensed Taniruco to list all its 30 million shares.
Taniruco, valued at $240 million on the unofficial markets, would be the second new firm to list on the country's main stock exchange this year. Thuan An Wood Processing Co., a subsidiary of top rubber firm Vietnam Rubber Group, is due to list on Monday.
In January, Pha Lai Power Co (PPC) moved its listing top Ho Chi Minh City from the over-the-counter Hanoi stock market.
Taniruco, based in the southern province of Tay Ninh, is a small rubber exporter, shipping 14,000 tonnes of the 708,000 tonnes exported last year from Vietnam, the fourth-largest rubber exporter after Thailand, Indonesia and Malaysia.
Its shares last traded at around 130,000 dong ($8) on the unregulated, unofficial markets, valuing the company at $240 million.
Taniruco reported its net profit jumped 50.5 percent to 143 billion dong ($8.8 million) last year from 2005 .
It expects a 40 percent rise in 2007 net profit to 200 billion dong and reported a net profit of 45.6 billion dong ($2.8 million) in the first quarter.
In December, the firm raised about $36 million in an initial public offering of nearly 8.4 million state shares which sold at an average price of 68,341 dong ($4.2).
Last month, a company official said Taniruco was finalising plans to grow 10,000 hectares (24,700 acres) of rubber in Cambodia next year.
Source: Reuters
Tuesday, July 17, 2007
Vietnam to move to non-stop share matching July 30
Vietnam's Ho Chi Minh Stock Exchange said on Tuesday it was scheduled to switch to continuous order matching on July 30 after several delays due to technical problems at brokerages.
The market authority also said it would raise the minimum size of each transaction to 100 shares from next year from 10 shares now, a move traders said would sideline small investors.
Under the new system, the open price would be established between 0830 and 0900 (0130-0200 GMT) followed by an hour of continuous order matching transactions, it said in a statment. The closing price would be fixed between 0300 and 0330 GMT.
Trading closes at 0400 GMT, giving 30 minutes to put through deals on the market, which has a capitalisation of about $13 billion and celebrates its seventh birthday this month.
The exchange, one of the world's fastest growing stock markets with a 144.5 percent rise last year, had planned to switch to continuous order matching from May 7 but brokers did not have the new trading system ready.
The VN Index slipped below psychological support of 1,000 points on Monday, falling 1.96 percent to 995.83 points after a Merrill Lynch report raised liquidity concerns.
The index had risen 32.5 percent so far this year but daily trade had halved to an average $30 million in June from $60 million previously, the investment bank said in its July stock market report.
Source: Reuters
The market authority also said it would raise the minimum size of each transaction to 100 shares from next year from 10 shares now, a move traders said would sideline small investors.
Under the new system, the open price would be established between 0830 and 0900 (0130-0200 GMT) followed by an hour of continuous order matching transactions, it said in a statment. The closing price would be fixed between 0300 and 0330 GMT.
Trading closes at 0400 GMT, giving 30 minutes to put through deals on the market, which has a capitalisation of about $13 billion and celebrates its seventh birthday this month.
The exchange, one of the world's fastest growing stock markets with a 144.5 percent rise last year, had planned to switch to continuous order matching from May 7 but brokers did not have the new trading system ready.
The VN Index slipped below psychological support of 1,000 points on Monday, falling 1.96 percent to 995.83 points after a Merrill Lynch report raised liquidity concerns.
The index had risen 32.5 percent so far this year but daily trade had halved to an average $30 million in June from $60 million previously, the investment bank said in its July stock market report.
Source: Reuters
Friday, July 13, 2007
Taiwan-backed casino to raise $100 mln in Vietnam IPO
The Taiwan-backed Royal International Corp, operator of Vietnam's biggest casino Halong Casino, aims to raise about $100 million from its debut listing on July 20, a company official said on Thursday.
"Our expectation is that the shares would be traded on Ho Chi Minh Stock Exchange at about 200,000 dong ($12.4) each on the first day of trading," Tran Trong Nghia, the company's head of equitisation, told Reuters.
He said the 8 million shares to be listed have a face value of 10,000 dong each ($0.63) and account for nearly 23 percent of the firm's total stake.
Source: Reuters
"Our expectation is that the shares would be traded on Ho Chi Minh Stock Exchange at about 200,000 dong ($12.4) each on the first day of trading," Tran Trong Nghia, the company's head of equitisation, told Reuters.
He said the 8 million shares to be listed have a face value of 10,000 dong each ($0.63) and account for nearly 23 percent of the firm's total stake.
Source: Reuters
Wednesday, July 04, 2007
How are listed companies’ financial investments performing?
Of the 107 companies listing at the HCM City Securities Trading Centre, only five do not make financial investments, namely CYC, MCP, SAF, VGP and VPK. The other 102 companies have financial investment deals totalling several trillion VND.
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Tuesday, July 03, 2007
Rubber firm wins listing approval
A small Vietnamese rubber firm won preliminary approval on Tuesday to list on the country's main stock market, the exchange said in a statement.
When licensed, Tay Ninh Rubber Company, or Taniruco, would be the first to debut on the Ho Chi Minh Stock Exchange this year and only the country's second after small builder Cholonres (RCL) made its debut on the Hanoi market on June 14.
Taniruco needed to complete more paperwork before receiving a listing licence, the Ho Chi Minh Stock Exchange statement said without elaboration.
It would be the third rubber firm to list after Hoa Binh Rubber Co. (HRC) and Danang Rubber Co. (DRC).
Based in the southern province of Tay Ninh, Taniruco is a small rubber exporter, shipping 14,000 tonnes of the 708,000 tonnes exported from Vietnam in 2006.
Taniruco shares traded at 128,000 dong to 130,000 dong ($7.9-$8) on the unregulated, unofficial markets late last week, up from 110,000-112,000 dong in May before it applied for a listing. The firm was therefore valued at $240 million.
Its net profit jumped 50.5 percent last year from 2005 to 143 billion dong ($8.8 million).
In December, the firm raised about $36 million in an initial public offering of nearly 8.4 million shares held by the state which sold at an average price of 68,341 dong ($4.2).
Last month, a company official said Taniruco was finalising plans to growing rubber trees on 10,000 hectares (24,700 acres) of land in Cambodia next year.
Source: Reuters
When licensed, Tay Ninh Rubber Company, or Taniruco, would be the first to debut on the Ho Chi Minh Stock Exchange this year and only the country's second after small builder Cholonres (RCL) made its debut on the Hanoi market on June 14.
Taniruco needed to complete more paperwork before receiving a listing licence, the Ho Chi Minh Stock Exchange statement said without elaboration.
It would be the third rubber firm to list after Hoa Binh Rubber Co. (HRC) and Danang Rubber Co. (DRC).
Based in the southern province of Tay Ninh, Taniruco is a small rubber exporter, shipping 14,000 tonnes of the 708,000 tonnes exported from Vietnam in 2006.
Taniruco shares traded at 128,000 dong to 130,000 dong ($7.9-$8) on the unregulated, unofficial markets late last week, up from 110,000-112,000 dong in May before it applied for a listing. The firm was therefore valued at $240 million.
Its net profit jumped 50.5 percent last year from 2005 to 143 billion dong ($8.8 million).
In December, the firm raised about $36 million in an initial public offering of nearly 8.4 million shares held by the state which sold at an average price of 68,341 dong ($4.2).
Last month, a company official said Taniruco was finalising plans to growing rubber trees on 10,000 hectares (24,700 acres) of land in Cambodia next year.
Source: Reuters
Hoa Phat Corporation to list on bourse
Hoa Phat Corporation, the nation’s one of leading wood products firms, has filed to list shares with the Ho Chi Minh Stock Exchange in September.
The corporation has increased its charter capital from 1.1 trillion VND (68.8 million USD) to 1.3 trillion VND (81.3 million USD) and issued 20 million shares this year, earning 1.2 trillion VND (75 million USD).
Hoa Phat posted profits of 200 billion VND (12.5 million USD) in the first five months of this year, a year-on-year increase of 63 percent.
Source: VNA
The corporation has increased its charter capital from 1.1 trillion VND (68.8 million USD) to 1.3 trillion VND (81.3 million USD) and issued 20 million shares this year, earning 1.2 trillion VND (75 million USD).
Hoa Phat posted profits of 200 billion VND (12.5 million USD) in the first five months of this year, a year-on-year increase of 63 percent.
Source: VNA
Friday, June 22, 2007
Where are billion dollars to be injected?
Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Sunday, June 03, 2007
Lam Dong tea sells shares
The Lam Dong Tea Joint Stock Co will become the nation’s first tea enterprise to make an initial public offering on the HCM City bourse on June 4.
The company will issue more than 1.9 million shares, representing about 43% of the company’s equity of VND45 billion (US$2.8 million).
Following the IPO, the State would continue to hold a 45% stake in the company, while employees would hold 11.9%.
Several of the company’s subsidiaries were equitised in 2005, including Cau Dat - Da Lat Tea, Di Linh Tea and Coffee, Minh Rong Tea, Ha Giang Tea, Rong Vang Tea and May 1 Tea.
Besides processing green tea, Lam Dong Tea has a black tea processing facility with an annual capacity of up to 1,200 tonnes.
Lam Dong, formed in 1976, annually exports about 1,200 tonnes, or 15-20% of its total output of green and black tea, to the Middle East, and 1,200-1,700 tonnes, or 20-28% of total output, to Asian countries.
It predicts revenue of VND57.4 billion (US$3.59 million) in 2007, VND66.3 billion in 2008 and VND75 billion in 2009, and pre-tax profits of VND1.5 billion ($94,370) in 2007, VND3 billion in 2008 and VND4.2 billion in 2009.
Plans for 2007-09 include investment in renewing equipment and technology, diversifying products, improving quality and expanding markets.
Source: VNS
The company will issue more than 1.9 million shares, representing about 43% of the company’s equity of VND45 billion (US$2.8 million).
Following the IPO, the State would continue to hold a 45% stake in the company, while employees would hold 11.9%.
Several of the company’s subsidiaries were equitised in 2005, including Cau Dat - Da Lat Tea, Di Linh Tea and Coffee, Minh Rong Tea, Ha Giang Tea, Rong Vang Tea and May 1 Tea.
Besides processing green tea, Lam Dong Tea has a black tea processing facility with an annual capacity of up to 1,200 tonnes.
Lam Dong, formed in 1976, annually exports about 1,200 tonnes, or 15-20% of its total output of green and black tea, to the Middle East, and 1,200-1,700 tonnes, or 20-28% of total output, to Asian countries.
It predicts revenue of VND57.4 billion (US$3.59 million) in 2007, VND66.3 billion in 2008 and VND75 billion in 2009, and pre-tax profits of VND1.5 billion ($94,370) in 2007, VND3 billion in 2008 and VND4.2 billion in 2009.
Plans for 2007-09 include investment in renewing equipment and technology, diversifying products, improving quality and expanding markets.
Source: VNS
Friday, June 01, 2007
Bourse does equitisation shuffle
The Ho Chi Minh City Securities Trading Centre (HoSTC) will undergo some major changes as it transforms into a limited liability company, said the bourse’s Director Tran Dac Sinh.
The restructuring is part of a long-term plan to equitise the stock exchange by 2010, the exact timing of which will be determined by senior Government officials. Bourse officials are trying to complete the switch to a limited liability company by the end of July.
One of the more noticeable alterations besides a new name – the Ho Chi Minh City Stock Exchange (HOSE) – will be the new control structure. The bourse will no longer be a branch of the State Securities Commission, but act as an independent company under the securities and enterprise laws.
The exchange will be able to issue its own rules and regulations, and take charge of market enforcement.
”Listed companies and members taking part in the market have to comply with our rules, any violators will suffer the consequences,” said Sinh.
Secondly, the exchange will be able to manage its finances and human resources more independently.
Currently, HoSTC spending is tied to the State budget, while bourse executives have to wait for Government approval on various operations, including hiring staff.
The HOSE will continue to collect dues from brokerage fees to selling its Securities Market Bulletin. This year, the HoSTC expects to collect around 150 billion VND (9.3 million USD) in fees, doubling last year’s figure.
Companies wanting to hold an initial public offering or already listed on the exchange will still have to meet strict standards already laid out by the bourse, said Sinh.
For example, companies must have at least 80 billion VND (4.98 million USD) in charter capital. HoSTC executives will likely lift the threshold in the near future. “In principle, we will maintain the stock exchange’s image as a place where the economy’s largest, most efficient companies are listed,” said Sinh.
“We will try to make enterprises understand that to list is to be selected. Not all companies who want to list will make the cut.”
In the future, the HOSE intends to enter joint ventures with foreign bourse.
“We have already signed co-operation agreements with many foreign stock exchanges, mainly in terms of training and technical support and supplying information technology,” said Sinh.
Greater tie-ins with regional bourses will help companies wanting to raise foreign capital by issuing stock abroad, said Sinh, with overseas firms just as easily coming to Viet Nam.
In terms of trading, the restructuring will not have a major impact on the market, though regulators are preparing for the new electronic order matching system on June 4.
HoSTC Deputy Director Le Hai Tra said the centre is awaiting Ministry of Finance and State Securities Commission’s approval to deploy the new trading system.
Source: VNA
The restructuring is part of a long-term plan to equitise the stock exchange by 2010, the exact timing of which will be determined by senior Government officials. Bourse officials are trying to complete the switch to a limited liability company by the end of July.
One of the more noticeable alterations besides a new name – the Ho Chi Minh City Stock Exchange (HOSE) – will be the new control structure. The bourse will no longer be a branch of the State Securities Commission, but act as an independent company under the securities and enterprise laws.
The exchange will be able to issue its own rules and regulations, and take charge of market enforcement.
”Listed companies and members taking part in the market have to comply with our rules, any violators will suffer the consequences,” said Sinh.
Secondly, the exchange will be able to manage its finances and human resources more independently.
Currently, HoSTC spending is tied to the State budget, while bourse executives have to wait for Government approval on various operations, including hiring staff.
The HOSE will continue to collect dues from brokerage fees to selling its Securities Market Bulletin. This year, the HoSTC expects to collect around 150 billion VND (9.3 million USD) in fees, doubling last year’s figure.
Companies wanting to hold an initial public offering or already listed on the exchange will still have to meet strict standards already laid out by the bourse, said Sinh.
For example, companies must have at least 80 billion VND (4.98 million USD) in charter capital. HoSTC executives will likely lift the threshold in the near future. “In principle, we will maintain the stock exchange’s image as a place where the economy’s largest, most efficient companies are listed,” said Sinh.
“We will try to make enterprises understand that to list is to be selected. Not all companies who want to list will make the cut.”
In the future, the HOSE intends to enter joint ventures with foreign bourse.
“We have already signed co-operation agreements with many foreign stock exchanges, mainly in terms of training and technical support and supplying information technology,” said Sinh.
Greater tie-ins with regional bourses will help companies wanting to raise foreign capital by issuing stock abroad, said Sinh, with overseas firms just as easily coming to Viet Nam.
In terms of trading, the restructuring will not have a major impact on the market, though regulators are preparing for the new electronic order matching system on June 4.
HoSTC Deputy Director Le Hai Tra said the centre is awaiting Ministry of Finance and State Securities Commission’s approval to deploy the new trading system.
Source: VNA
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