Vietcombank fund management arm releases 2007 fiscal report

Wednesday, May 7, 2008
The Vietcombank Fund Management Co (VCBF) recently released its 2007 brief fiscal report with nearly 133.348 billion dong in total assets including 3.56 billion dong in fixed assets and 93.64 billion dong in ownership capital.
Last year, the company posted nearly 68.237 billion dong in revenue from business activities, 3.48 billion dong in revenue from finance activities and nearly 54.529 billion dong from after tajavascript:void(0)
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Incomfish enlarges business scope

Wednesday, May 7, 2008
Investment Commerce Fisheries Joint Stock Corp (Incomfish-coded ICF) yesterday May 5 announced that this year it plans to invest 250 billion dong in Tan Thanh industrial complex in the southern province of Dong Nai covering on an area of 100 hectares, another 48 billion dong in Linh Xuan realty project to build three-start hotel and trade centre in Thu Duc District in HCM City and 42.6 billion dong in Saga Service Trade and Production Ltd Co to join realty projects in HCM City.

Recently, Incomfish also invested 66.24 billion dong in Asia Fisheries Commerce Joint Stock Co to build a frozen fishery factory in the southern province of Dong Thap and contributed capital to set up Incomfish Co in the US and Europe with the total investment capital of US$1.8 million.

Last year, the company made a revenue of 326 billion dong, 21.15 billion dong from after tax profit. This year, Incomfish target to bring the figures to 535 billion dong and 33 billion dong respectively.

Techcombank to launch securities arm

Wednesday, May 7, 2008
Technical and Commercial Joint Stock Bank (Techcombank)'s shareholders' meeting recently passed the plan to pay 2007 dividend of 25.25%. Up to the end of last year, the bank's chartered capital reached 2.521 trillion dong.

Although the capital market is facing many difficulties, the bank plans to set up some subsidiaries including securities company, fund management company under the 100% Techcombank-invested one-member limited company model in the forthcoming time.

The shareholders' meeting also passed the business plan this year with 70.469 trillion dong in total asset and 1.26 trillion dong from pre tax profit and dividend paying plan of 19%.

Maritime Bank receives global transaction banking award

Wednesday, May 7, 2008
Maritime Commercial Joint Stock Bank (Maritime Bank) has recently been awarded the prize for international payment service quality by Hong Kong and Shanghai Banking Corp (HSBC).
This is an annual prize awarded by HSBC to recognise candidate banks reaching the international standard payment service orders of approximately 100% and high revenue of international payment.
Last year, fee collection from payment service accounted for 53% on total service fee collection in total Maritime Bank's system.

Banks crimp new loans

Wednesday, May 7, 2008
After various meetings, the ceiling deposit interest rate agreed among members of the Vietnam Bank Association (VNBA) has been raised from 11% a year to 12% a year. However many people said that there will be not much improvement for deposits and loans in the upcoming time. Banks will still tighten credit and businesses will continue meeting difficulties in accessing banks' capital.

According to some small-scaled commercial joint stock banks, simultaneously agreeing on raising the ceiling interest rate to 12% a year means that both large and small banks have the right to apply this interest rate. Small-scaled banks continued being entitled to disadvantages because with the same interest rate, consumers prefer large-scaled, prestigious banks to deposit their idle money instead of small banks. On the other hand, idle capital into banks is increasingly less when inflation has not yet been eased.

Pham Duy Hung, general director of Viet A Bank, said that deposits of banks significantly reduced in April. It was reported that deposits of HCM City-based banks in the first two weeks of April slashed by up to nine trillion dong against late March. Thus, Hung added that with high increase in inflation of 11.6% in the first four months, the deposit interest rate of 12% did not yet encouraged people to deposit money.

Sharing the same point of view, Le Dac Son, general director of Vietnam Bank for Private Enterprises (VPBank), said the government should not maintain the ceiling deposit interest rate but let it follow the market mechanism. In case the ceiling deposit interest rate is applied, the rate should be higher, 13-13.5% instead of 12% in order to attract deposits into banks. After sometime when banks balance supply and demand of capital, they will consider cutting deposit interest rates to reduce costs.

Up to now, the central bank only has restricted securities loans at less than 20% of banks' chartered capital however loans to other sectors are still decided by banks. Nevertheless, in fact banks seem to tighten credit strongly.

If banks restrict lending it is because they have failed to raise sufficient deposits although lending interest rates have climbed up to all-time high levels, 20-21% a year for medium and long-term capital, 24% a year for short-term consumer loans.

Son said that banks do not dare to offer much loans to new clients while lending applications of old customers must be carefully considered. Therefore, if the ceiling deposit interest rate is still maintained, this will cause difficulties for borrowers.

Meanwhile, Hung said if supply of dong continues being limited, banks still have to rein deposit interest rates based on the allowed ceiling deposit interest rate, borrowers will meet more difficulties because too big difference between demand and supply of capital.

Currently, almost all banks are worrying over ensuring liquidity, disposable income, hence, they do not dare to offer loans and also hastily collect old loans.

According to Luu Duc Khanh, general director of An Binh Commercial Joint Stock Bank (ABBank), if supply and demand of capital is not yet improved in the upcoming months, this will cause difficulties for banks because if deposits and loans reduce, revenue and profits of banks will also be narrowed accordingly. (DTCK)

Call to cut statutory reserve ratio to 8%

Wednesday, May 7, 2008
The State Bank of Viet Nam should shift from monetary tightening up move to close control through reducing the compulsory reserve ratio from the current 11% down to 8% first off, proposed Prof Dr Tran Hoang Ngan, member of the National Finance and Monetary Policy Consultancy Council.

Many countries now carry out monetary polices in line with the core inflation (that is the inflation index excluding some kinds of goods with easily changeable prices such as fuel, energy, power, food) to monitor the market. The scientific calculation of core inflation will help SBV get more flexible in solving interest rate problem because shocks caused by prices of basic kinds of goods are rejected.

Despite the US Federal Reserve Fund (Fed) recently cut the federal fund rate down to 2%, the country's inflation still stood at high with the CPI (headline inflation) was up to 4% and core inflation of 2.4%. meanwhile, US banks' deposit interest rate is only at 2-3% per annum, In Thailand, the CPI last year rose by 5.3% and core inflation was recorded at 1.8%. But the Thai central bank adjusted the discount interest rate at 3.25% while Bangkok Bank raised the bath deposit with the interest rate of 2.5-3% per annum. Some other nations such as Canada, Philippines and Singapore also saw a similar inflation situation. As comparing CPI with deposit interest rate, if US Federal Reserve and many countries are monitoring the monetary market with negative interest rate policy?

Vietnam's CPI during the first four months of 2008 increased by 11.6% that could climb to 15-20% by the year end with the government's subsidisation in prices of petroleum, electricity, coal and steel. Factually, one of reasons causing new highs of CPI is the increase in prices of crude oil and food. In the intentional market, the oil price is soaring due to the shortage of the supply, the US dollar banknote is weaker and others.

Thus, Vietnamese state could not subsidise prices of food and crude oil in a long time, which could push the CPI to rise by over 20%. So SBV's current monitoring method based on CPI is inexact. If the deposit rate is over 20% per annum, the lending rate can jump to the unimaginable high. By that time, businesses cannot borrow loans for business and production expansion, leading to business inefficiency, fall in people's income and rise in the unemployment. If people have no money to deposit at banks, the economy, stock market and real estate market could not rally. It is confirmed that Vietnam's positive interest rate policy against CPI is not totally reasonable.

The effectiveness of monetary tightening up policies is promoted as banks' outstanding loans in April fell sharply. However, now is right time to loosen the policies. But, in fact, the increasing CPI is also caused by overspending of 5% GDP and speculation. Therefore, SBV should change monetary policies to strict control through reducing the compulsory reserve ratio from the current 11% down to 8% first off whereby the tense in the monetary market will be eased and the pressure of money supply via the open market will be lowered with an acceptable overnight interest rate.

Usually, along with CPI, some nations use core inflation to monitor interest rate policies because core inflation reflects inflation more exactly than CPI that is affected by short-term factors such as prices of petroleum and food.

It is right time that General Statistical Office should announce the core inflation of Vietnam to help SBV release monetary policies. As estimated, the core inflation accounts for about 70% of CPI. (NLD)

SeABank reports 127b dong Q1 profit

Wednesday, May 7, 2008
The Southeast Asia Bank or SeABank recently reported the business result in the first quarter of 2008 with nearly 127 billion dong from pre tax profit, 18.562 trillion dong in total deposits, over 11 trillion dong in outstanding debts, 24.217 trillion dong in total asset and overdue debt rate was 0.26% on total outstanding debt.

At present, the bank with a chartered capital of three trillion dong has launched nearly 50 transaction sites nationwide that could be 85 sites within this year.

This year, SeABank also plans to hike its chartered capital to five trillion dong and reach 804 billion dong in profit.

Saigon Hanoi Securities broker expands in HCM city

Wednesday, May 7, 2008
The State Securities Commission (SSC) yesterday May 5 issued the Decision No 320/QD-UBCK approving the Saigon Hanoi Securities Joint Stock Co to set up its branch at 41 Pasteur, Nguyen Thai Binh ward Ho Chi Minh City's District 1.
The branch is allowed to carry out securities activities like securities brokerage, securities investment consultancy and securities depository.

Sudico reports performance

Wednesday, May 7, 2008
Song Da Urban & Industrial Zone Development and Investment Co (Sudico) reported that last year it reached 940.201 billion dong in total basic construction investment value, 861.336 billion dong in total business and production value, 722.275 billion dong in total revenue and the profit of 359.278 billion dong. In addition, the firm paid 180.616 billion dong in taxes.

The figures are targeted at over 1.296 trillion dong, 1.401 trillion dong, 1.286 trillion dong, 506.500 billion dong and 574.559 billion dong correspondingly in 2008.

Also Sudico targets to reach a chartered capital of 400 billion dong and a dividend of 15-20% in 2008.

Ha Tien transportation firm to issue additional shares

Wednesday, May 7, 2008
Ha Tien Transportation Joint Stock Co (coded HTV) recently decided to issue additional 10.8 million shares to increase the chartered capital, However the issue schedule will be approved by its shareholders' meeting.
HTV targets to reach a dividend of 10% and a pre-tax profit of 22.12 billion dong in 2008.

PTSC to pay dividend of 15% this year

Wednesday, May 7, 2008
Petroleum Technical & Service Co (PTSC)'s shareholders' meeting recently passed this year's business plan with some 6.5 trillion dong in revenue, 300 billion dong from after tax profit, the rate of profit on chartered capital could be 20%, paying state budget of 165 billion dong and paying dividend of 15%, up 1% against 2007.
Ending the 2007 fiscal year, PTSC posted 5.776 trillion dong in revenue, exceeding 170% in comparison with the year's target of 3.4 trillion dong, 319 billion dong from pre tax profit, exceeding 163% against the year's plan and paid

Vietnam Resource Investments (Holdings) Limited Acquires Shares of Keeper Resources Inc.

Wednesday, May 7, 2008
Viet Nam Resource Investments (Holdings) Limited ("VRI") announced that it has today acquired 10,000 common shares of Keeper Resources Inc. (TSXV: KEE) ("Keeper"). On April 4, 2008, Keeper announced that VRI agreed to make an all cash offer to acquire all of the issued and outstanding common shares of Keeper on a fully diluted basis at a price of $1.50 per share by way of a take-over bid. KR Acquisition Corp. ("KAC"), an indirect wholly-owned subsidiary of VRI, mailed the formal documents in connection with the offer to security holders of Keeper on April 16, 2008.

The highest price paid per share purchased today was C$1.48. The average price paid per share purchased during the course of KAC's acquisition of Keeper to date is C$1.48.

The aggregate number of Keeper shares purchased by VRI, including purchases made today, is 927,100. As a result of today's transaction, VRI now owns a total of 927,100 common shares of Keeper, or 2.87% of the common shares of Keeper.

VRI is an investment fund managed by Dragon Capital Management Limited ("Dragon Capital"). Funds managed by Dragon Capital currently own 6,687,100 shares of Keeper (including today's purchase by VRI), which represents approximately 20.7% of Keeper's issued and outstanding common shares. Dragon Capital is a part of a financial group focused on Viet Nam. The Group's investment management arm is the country's largest dedicated portfolio investor. The group is known both within Viet Nam and international financial circles as one of the premier Vietnam-focused financial institutions.

SaigonTel shareholders approve targets

Tuesday, May 6, 2008
Shareholders at the annual meeting of Sai Gon Telecommunication and Technologies Corporation (SaigonTel) have agreed to finance targets of VND1.6 trillion, after-tax profits of VND352.7 billion and a dividend ratio at 30%.
In addition, Saigontel will continue investment in projects such as the expanded ICT Dai Dong-Hoan Son project, high-rise buildings and a hi-tech zone.

Light fixture maker sees brighter revenues in Q1

Tuesday, May 6, 2008
Rang Dong Light Source and Vacuum Flask Co (RAL) has announced first quarter revenue of VND264 billion, or a year-on-year increase of 2.5%.
This year, because of high input costs and rising interest rates, the company has targeted total revenue of VND935 billion, an increase of 11.18% on last year.
The company will continue investing in production line to make fluorescent and compact lamps worth VND16 billion and another production line to make 19-tonnes of glass tubes a day, valued at VND56 billion.

Cavico Corp. Received Decision to Invest and Construct Hoa Binh Ecological and Cultural Zone

Tuesday, May 6, 2008
Cavico Corp. (Cavico) (OTCBB:CVIC) today announced that Luong Son International Tourism Investment JSC, its wholly own subsidiary, has been authorized by Hoa Binh People’s Committee to invest and construct the Hoa Binh ecological and cultural zone known as “Ecozone.”

This announcement is made in conjunction with the Vietnamese government’s announcement that it has approved a plan to expand the capital city of Hanoi in its effort to create a national center for politics, culture, economy and science, noted the Vietnam Investment Review.

Cavico’s project will be located within the newly announced boundaries of Hanoi. Under the plan, Hanoi will be expanded to the west and will cover all of Ha Tay province, the Me Linh district of Vinh Phuc province, and four communes in Luong Son district of Hoa Binh province. The expansion will triple the geographic size of Hanoi and expand its population to over 6.2 million people.

The plan will be submitted to the National Assembly, the country's top legislature, for final approval at its session to be held this month. "If the plan is approved, the process of merging Hanoi with other areas will start on July 1," said Minister of Home Affairs Tran Van Tuan.

In conjunction with this plan Cavico Corp.’s future construction site will be located in Luong Son village, Hoa Binh province. This site is located along Highway Six, which will be the main artery connection from Hanoi to the northwest provinces. The 1.3 square-mile zone will be constructed over a four year period beginning in 2010, at a total investment cost of $930 million. Net profits are anticipated to be around $150 million. The zone, the first of its kind in the nation, will be divided into nine sub-centers including Cavico Center, a recreational park, entertainment and convention center, Muong Village, Friendship Village, World Village, high-end homes, a restaurant and hotel.

“We intend to build a world-class international tourism zone to meet both domestic demand and to attract national and international vacationers,” stated Hai Thanh Tran, Cavico Vice President. “Also within this zone we would like to preserve the unique Muong culture, which represents 1.5% of Viet Nam’s population. The Cavico Tower, Chieng Ngan Urban, Ngo Sai Urban and the Hoa Binh projects will enable us to significantly expand our real estate holdings in Vietnam and will enlarge our profit potential.”

Foreigners Net Buyers Of VND108 Billion Of Shares

Tuesday, May 6, 2008
Foreign investors were net buyers of VND108 billion ($6.8 million) of Vietnamese stocks Tuesday out of a total VND253 billion traded, the Ho Chi Minh Securities Trading Center said.
Volume was 5 million shares, with foreigners accounting for 50% of the total, the stock market operator said. (Dow Jones)

State Bank raises total annual gold import to 73.5 tonnes

May 6, 2008
The State Bank of Viet Nam has allowed both gold dealerships and banks to import an additional 3.5 tonnes of gold, bringing the total quota this year to 73.5 tonnes.
The Bank for Agricultural and Rural Development and its in-house jewellery company, as well as the Sai Gon- Thuong Tin Joint Stock Commercial Bank, have been allotted one tonne each.
The remaining 500kg units will go to DongA Bank, the SJC Jewellery Co branch in Phu Tho, and the Doji Trade, Investment and Jewellery Co.
The central bank has just approved NamA Bank and the Doji Trade, Investment and Jewellery Co to trade gold on overseas bank accounts.
At the international conference on gold trading held late last month in HCM City, experts urged the Government to scrap the gold import quota and to allow companies and individuals to open conditional accounts overseas which could all in turn be used to purchase gold, boosting supply on the local gold market. (VNS)

Vinamilk Q1 net profit falls 3 pct

Tuesday, May 6, 2008
Vinamilk, Viet Nam's top dairy firm, said net profit in the first quarter fell 3% to 309 billion dong ($19.3 million) despite a 33% rise in revenues.
The company did not provide reasons for the fall in earnings from a year earlier.
In the January-March period, revenues reached 1.84 trillion dong ($115 million), compared with 1.38 trillion in the same period last year, the company report seen on Tuesday said.
The Ho Chi Minh City-based firm had recently forecast that its net profit would rise more than 18% this year to 1.14 trillion dong.
It also said it expected revenues to jump 23% to 8.2 trillion dong.
Vinamilk, the largest company on the Ho Chi Minh City exchange with a capitalisation of $1.49 billion, plans to list nearly 8.8 million shares overseas this year, increasing its registered capital by 5% to 1.84 trillion dong.
The company has said it wants to list in Singapore.
Vinamilk shares closed up 1.47% at 138,000 dong on Tuesday. (Reuters)

PM: Primary priority given to curbing inflation

Tuesday, May 6, 2008
The Vietnamese Prime Minister reiterated that his cabinet will continue to place top priority on reining in inflation in the coming months while addressing the National Assembly session in Hanoi on May 6.

Prime Minister Nguyen Tan Dung asked the law-making body to consider the Government’s request to lower the country’s GDP growth rate target of 8.5-9% to 7% for the current year.

PM Dung introduced to the law-makers the Government’s eight-solution package to curb inflation, stabilise macro-economy and ensure social welfare and sustainable development.

He emphasised the implementation of a tight and effective financial and monetary policy as the first in the package.

The PM also referred other tasks, including removing hindrances to production, services and investment attraction, accelerating exports to reduce trade deficit, intensifying management over the market and prices and fighting speculation and smuggling.

While expressing the resolve to control inflation, PM Dung admitted the Government’s shortcomings and weaknesses in managerial and executive work.

He pointed out that the Government had maintained a lax monetary policy for years, especially in 2007, thus driving general means of payments and total outstanding credits to rise high, leaving direct pressure on inflation.

Besides, the PM also pointed to the consecutive overspending rates of 5% for years while the economy has been growing bigger and bigger. “This has not been helpful to the control and slash of the State budget expenditure,” he said.

He mentioned the State’s weaknesses in managing various markets, including the stock and real estate market, and also prices and export and import activities.

Adequate attention has not yet been given to market forecasting and study work, the PM noted, noting agencies’ failure to provide the people with prompt, clear and consistent explanations on new developments arising from the market and the issuance of policies which are sensitive to them.

Reviewing the country’s socio-economic performance in 2007 and the first four months of the year, the Governmental leader said that almost all targets for 2007 were overfulfilled with an economic growth rate of 8.48 percent.

However, he noted, the unexpected developments of the world economy with high prices of crude oil, food, materials, machinery and equipment in the last months of 2007 have posed fierce challenges to the country’s economic management and negatively impacted the stability of the macro-economy.

The Government has promptly implemented a number of policies and measures to control inflation, enhance pricing management and stabilise the monetary, securities and realty markets. In addition, the Government has also helped remove difficulties for production development and promoted exports and limited trade deficit while ensuring the balance of essential goods and helping farmers, fishermen and disadvantaged people to stabilise their life and production.

PM Dung took the occasion to point out the shortcomings of the national economy such as the economic growth rate of 7.4% in the first quarter of 2008 is still lower than that of last year’s corresponding period (7.8%) and much lower than the whole year’s target of between 8.5 and 9%. The consumer price index rose 11.6% in April compared with last December and up 21.42% over April 2007.

He mentioned developments that are badly affecting the people’s life including inflation, price hike and trade deficit together with complex monetary, securities and real estate markets. (VNA)

Banking system in difficulties, but not desperation

Tuesday, May 6, 2008
Le Xuan Nghia, Director of the Banking Development Strategy Department under the State Bank of Viet Nam, has denied the opinion that banks may fall into a financial crisis due to the tightened monetary policy and the sharp price falls of real estate, which is 50% of the mortgaged assets for bank loans.

What is your comment about the pressure of fighting inflation which is burdening commercial banks?

The Government should not be overhasty in fighting inflation by overly tightening the monetary policy, as this will make banks’ liquidity lower and bring more risks. We have to go step by step in fighting inflation in the context of the possible world crisis. We have to do the things that both allow us to curb inflation and ensure the liquidity of banks as well.

If the Government and State Bank of Vietnam become impatient to reduce the inflation rate to below the previous year’s level or restrain the credit growth rate at 30% this year, banks’ liquidity will be low.

The Viet Nam Banking Association still insists on the ceiling interest rate scheme. What would you say about this?

The association wants low lending interest rates in order to ease the burden on businesses. However, it is impossible to do both things at the same time, tightening monetary policy and keep low interest rates. I advocate the removal of the ceiling interest rate scheme.

I think that the State should keep a line of retreat open for commercial banks. It should not use administrative orders to regulate the market, with which the banks cannot survive.

As you may know, the US and European economies are paying heavy prices for the real estate bubble. How will the bubble burst in Vietnam, if it occurrs, affect the national economy?

The outstanding loans to fund real estate investments just amount to 10% of banks’ total assets. However, the properties which are the mortgaged assets for bank loans, account for up to 50% of banks’ total assets, nearly equal to Vietnam’s GDP. Therefore, it is clear that if the real estate market collapses, this will harm the financial system. Therefore, the Government must not let the market collapse, and must not let the bubble exist. The bubble must be burst, but gradually.

Statistics showed that some banks have lent 250% of mobilized capital. Do you think that it is a sign of banks’ crisis?

The figure is not worrying. Why can bank borrow VND1 and lend VND2.5? Because it can borrow money from bigger banks, and the money is in the fixed term loans among banks. No bank dares use overnight loans to lend. It seems that even the central bank’s officials do not well understand the principle, therefore, worries about the crisis have been raised.

Between low liquidity, falling real estate market, do you think that all these factors can trigger a banking crisis?

I think that the liquidity problems are just temporary, which cannot cause the collapse of the banking system. The banking system is in difficulties, but everything is still under control. In case one or several banks fall into crisis, the central bank will surely rescue them in order to avoid domino effects. (SGTT)

Is there a hand that controls the stock market?

Tuesday, May 6, 2008
Two months ago, an official from the State Securities Commission (SSC) revealed that it had discovered the transactions by some big institutions that aimed to restrain share prices. He said there was the hand of foreign institutions.

The transactions on the market in the last six months showed that the influence that investors think tries to sway the market, is really existing.

Nevertheless, until now, SSC still has not provided any further detail, including the names and the tricks of the institutions and individuals, as well as the things SSC will do to punish them in order to make the market healthier.

In the last several months, a lot of blue-chip items, including REE, FPT, SAM and SSI were once sold in big volume in a lot consecutive trading sessions at floor prices, which led to the massive sale of these items from small investors, who played the stock market with borrowed money and could not keep shares for a long period.

As a result, the prices of a lot share items plunged dramatically to the prices which were equal to 1/3 of the peak prices seen in March 2007.

An experienced investor said that he believes that some big investors have made use of the bad news like the gold price fluctuations, continued oil price increases, high inflation, the tightened monetary policy and the US economic recession, to force the stock prices down to unexpectedly low prices. Thousands of small investors had to sell shares out massively, and it was the right time for the big investors to buy shares in.

The transactions in the last six months showed that the arguments about the influence that tries to control the market are reasonable.

Most recently, in April 2008, SSC’s inspectors took an inspection tour to securities companies, the members of the HCM City Stock Exchange, where they checked the transactions made at the companies. The inspectors found out five most suspicious accounts out of 300,000 accounts.

These were the accounts which had the biggest transaction value and highest transaction frequency.

In mid April 2008, the second inspection tour was taken, when inspectors tried to find the trails related to an account with abnormal transactions.

The inspectors found out that right before Tet 2007, an individual investor transacted over 1mil shares of the share item listed among the top 10 items that had the biggest market capitalization value (the transactions of the share item were carried out in 3 consecutive trading sessions). After Tet, in 3 trading sessions, the investor sold over 1mil shares of the same share item.

SSC found out that the investor was assisted by a staff from a securities company in buying and selling shares.

A securities expert said that the cooperation among the Ministry of Public Security, Securities Depository Centre and SSC is needed to track down the transactions that aimed to control share prices.

He also said that SSC should ask the Government to raise the punishment on the violations relating to securities transactions. The current low fine levels of VND30-50mil for individuals, and VND50-70mil for violated institutions prove to be too low, not high enough to deter violators. (TBKTVN)

April 06, Stock market keep decreasing

Tuesday, May 6, 2008
Ending the 1778th trading session of the Vietnamese stock market, the Ho Chi Minh Stock Exchange (HOSE) today May 6 continued falling on the stock market when the VN Index slipped another 2.93 points or 0.56% to 518.35 pts with the total matching order trade of over five million shares and fund certificates worth nearly 253 billion dong, marking the second consecutively decreasing session.

Among 154 shares and fund certificates being listed on the southern bourse, the stock market recorded 34 shares increasing while four others stood still at the reference price, 114 shares decreasing and two shares with no transaction.
Two shares with no transaction were BTC and VTC.

Out of top ten shares with the largest market capitalisation, three shares reached the ceiling price namely VNM up 2,000 dong to 138,000 dong and HPG and ITA leaped 1,000 dong to 65,000 and 74,000 dong per share. In addition, VPL also added 2,000 dong to 120,000 dong per share.

Meanwhile, DPM lost 500 to end at 52,000 dong per share, PVD dropped 2,000 dong to 117,000, STB slipped 600 to 32,300 dong, FPT slashed 1,500 dong to 78,000, SSI down 900 to 47,200 dong and BMI lost another 1,300 dong to 32,400 dong per share.
DPM reached the biggest trading volume with 586.880 shares and followed by PPC with 478,110 shares, VHG with 375,250 shares, VTO with 345,250 shares and others including HPG, VSH, SSI, VNM and PVD.

Foreign investors bought 57 share codes with the total volume of 3,365,210 shares. Of which, BT6 reached the biggest volume with 861,080 shares, followed by DPM with 408,650 shares, PPC with 310,370, VTO with 259,680 and others like HPG, VHG, VSH and VNM.

Similarly, the Hanoi Securities Trading Center (HaSTC) today May6kept decreasing impetus on the stock market as the HaSTC Index lost another 3.16 points or 1.89% to end at 163.89 pts with the total market trade of 2,007,900 shares worth nearly 74 billion dong.

Amongst 136 listed shares on the northern bourse, the stock market saw ten shares increasing while 99 others decreasing, four shares stood still and 23 shares with no trade.

Ten shares increasing included MIC added 2,900, BHV up 800 dong, PSC +1,000, HPC and S55 +700, DST, NVC and PVE +500, LBE +300 and VBH increased 200 dong per share.

Four shares stood still including CSG, KBC, LUT and VSC.
S99 showed the biggest decline when losing 2,400 dong and followed by ACB slipped 2,300 dong and BVS and SCJ dropped 2,100 dong.

PVS stood at the first place in trading volume with 379,900 shares, followed by CSG with 185,600, ACB with 157,800, PVI with 134,800 and NVC with 114,700 shares being traded.