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 STB. Show all posts
Showing posts with label STB. Show all posts
Friday, August 31, 2007
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
Friday, June 15, 2007
JP Morgan to advise Vietnam's Incombank IPO
State-run Industrial and Commercial Bank (Incombank), Vietnam's fourth-largest, has picked JP Morgan to advise on its partial privatisation and an IPO scheduled for October, an official said on Tuesday.
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
Saturday, May 26, 2007
Foreign owned accounts at securities companies on the rise
More and more foreign investors have decided to make money on Vietnam’s stock market. Statistics show that the number of foreign owned accounts opened at securities companies is increasing.
According to the HCM City Securities Trading Centre (HSTC), nearly 5,000 foreign owned individual accounts have been opened at HSTC member securities companies. The owners of the accounts mostly are Japanese, Korean, Taiwanese and Singaporean. The largest number of foreign investors on Vietnam’s stock market proves to come from Japan.
Nguyen Hong Nam, Deputy Director General of the Saigon Securities Incorporated (SSI), said that some 2,000 foreigners’ accounts had been opened at SSI, 70% of which are Japanese owned.
BVSC, DVSC and Rong Viet all have reported an increased number of new foreign individual accounts, which account for 30% of the new accounts. Experts said that the new wave of foreign investment had been refreshing the stock market.
Vietnam’s stock market has become attractive in the eyes of foreign investors. Vietnam’s national economy is performing well, while the stock market is developing, which promises more profitable investment deals than developed markets.
In fact, the profit made by foreign securities investors in Vietnam has been increasing considerably. In his recent visit to Vietnam, John Stuttard, the Lord Mayor of the City of London, said that the gigantic development of the stock market had caught the special attention of British financial investors.
Nguyen Chi Trung, Director of the Brokerage Division under the Rong Viet Securities Company, said that if foreign investors kept trading as currently, the stock market would rally. Now, foreign investment funds are increasing their demand for securities, and they are especially targeting the IPOs of many big banks and corporations scheduled for the coming time.
VinaCapital said that it had estimated the sum of money to be disbursed, and has given a forecast about the auctioning price of Bao Viet shares. Mekong Capital has presented its third fund before the public, the $100mil Vietnam Azalea, which will focus on equitised companies in Vietnam. Mekong hopes to close the fund soon and begin the investment period, expected for the end of May.
Experts said that the demand of foreign investors was increasing. However, they will have to restructure their investment portfolios and look for new commodities, as there is no more room for foreign ownership in big companies like REE, SAM, STB and VNM.
Source: VNE
According to the HCM City Securities Trading Centre (HSTC), nearly 5,000 foreign owned individual accounts have been opened at HSTC member securities companies. The owners of the accounts mostly are Japanese, Korean, Taiwanese and Singaporean. The largest number of foreign investors on Vietnam’s stock market proves to come from Japan.
Nguyen Hong Nam, Deputy Director General of the Saigon Securities Incorporated (SSI), said that some 2,000 foreigners’ accounts had been opened at SSI, 70% of which are Japanese owned.
BVSC, DVSC and Rong Viet all have reported an increased number of new foreign individual accounts, which account for 30% of the new accounts. Experts said that the new wave of foreign investment had been refreshing the stock market.
Vietnam’s stock market has become attractive in the eyes of foreign investors. Vietnam’s national economy is performing well, while the stock market is developing, which promises more profitable investment deals than developed markets.
In fact, the profit made by foreign securities investors in Vietnam has been increasing considerably. In his recent visit to Vietnam, John Stuttard, the Lord Mayor of the City of London, said that the gigantic development of the stock market had caught the special attention of British financial investors.
Nguyen Chi Trung, Director of the Brokerage Division under the Rong Viet Securities Company, said that if foreign investors kept trading as currently, the stock market would rally. Now, foreign investment funds are increasing their demand for securities, and they are especially targeting the IPOs of many big banks and corporations scheduled for the coming time.
VinaCapital said that it had estimated the sum of money to be disbursed, and has given a forecast about the auctioning price of Bao Viet shares. Mekong Capital has presented its third fund before the public, the $100mil Vietnam Azalea, which will focus on equitised companies in Vietnam. Mekong hopes to close the fund soon and begin the investment period, expected for the end of May.
Experts said that the demand of foreign investors was increasing. However, they will have to restructure their investment portfolios and look for new commodities, as there is no more room for foreign ownership in big companies like REE, SAM, STB and VNM.
Source: VNE
Friday, May 25, 2007
ACB more than doubles registered capital
Asia Commercial Bank (ACB), Vietnam's fifth-largest bank by assets, said on Friday it had more than doubled its registered capital to 2.53 trillion dong ($157 million).
The Ho Chi Minh City-based bank said the new capital came into effect from May 11 and raised its registered capital, which determines the size of the bank's loans and deposits, from 1.1 trillion dong.
ACB said last week it was due to open Vietnam's first gold trading floor in Ho Chi Minh City on Friday to boost and streamline transactions of the precious metal.
ACB shares closed down 0.53% at 167,500 dong on Friday with 56,300 shares changing hands.
Shares in the bank, Vietnam's second listed lender after Sacombank (STB), have been trading on the over-the-counter Hanoi stock market since November.
Standard Chartered Plc. owns 8.56% of ACB and three other foreign investors own smaller stakes.
Source: Reuters
The Ho Chi Minh City-based bank said the new capital came into effect from May 11 and raised its registered capital, which determines the size of the bank's loans and deposits, from 1.1 trillion dong.
ACB said last week it was due to open Vietnam's first gold trading floor in Ho Chi Minh City on Friday to boost and streamline transactions of the precious metal.
ACB shares closed down 0.53% at 167,500 dong on Friday with 56,300 shares changing hands.
Shares in the bank, Vietnam's second listed lender after Sacombank (STB), have been trading on the over-the-counter Hanoi stock market since November.
Standard Chartered Plc. owns 8.56% of ACB and three other foreign investors own smaller stakes.
Source: Reuters
Sunday, November 19, 2006
French Insurer and Sacombank offer new insurance
French Prevoir group and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank - STB) launch a new insurance product.
The insurer and the bank introduced the Credit Life product, which will provide insurance for customers who take out Sacombank loans for house and land purchase or repair. In case of the insured's death or injury, Prevoir would forward financial coverage to Sacombank on their behalf.
The insurer and the bank introduced the Credit Life product, which will provide insurance for customers who take out Sacombank loans for house and land purchase or repair. In case of the insured's death or injury, Prevoir would forward financial coverage to Sacombank on their behalf.
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