USAID trains securities regulators

Thursday, May 22, 2008
The US Agency for International Development (USAID) will continue providing training courses for the professional staff of the State Securities Commission, the commission said on its website yesterday.

The courses will focus on improving the commission’s supervisory capacity in order to promote the transparency of the domestic stock market.

Commission chairman Vu Bang said, "Transparency plays an important role in market development. As market regulators, we will try hard to build this quality by tightening our supervision of trading activities on the market."

He said that the USAID training was a basis for better supervision in the future.

The US office would also help the commission complete the legal framework governing the stock exchange by co-operation with the State Securities Commission on proposed revisions to regulations in the Law on Securities.

"Along with an analysis of the actual situation on the stock market, we will work together to complete the legal framework soon to adequately meet international standards," Bang said.

He said that co-operation with USAID would contribute to making the stock market a more effective channel for the mobilisation of capital. (VNS)

Minister pep talks investors

Thursday, May 22, 2008
Minister of Finance Vu Van Ninh tried to speak some encouraging words to stock market investors yesterday, noting that the prolonged decline of many shares, in combination with the strong business performance of many listed enterprises, had resulted in highly advantageous price-per-earnings (P/E) ratios for many shares .

The P/E ratios suggested that investors could buy with confidence that their investments would bear fruit over time, Ninh said.

But Nguyen Thanh Nam, an investor and information technology professional, said, "The constant shedding of the index has left me feeling ill-at-ease, and I have decided to withdraw money from stocks to pour into commercial banks now that deposit interest rates are higher, at 12 per cent or more."

With most domestic stock traders apparently feeling much the same way, the VN-Index continued its slide yesterday for the thirteenth straight trading day, losing another 7.49 points, or 1.67 per cent, to close at 441.75.

In its current rout, the Index has lost a total of 80.61 points, or 15.52 per cent of its value.

Volume in yesterday’s trading was 4.85 million shares, worth VND212.8 billion (US$13.3 million). Foreign investors were net buyers of over 2.5 million of those shares.

There were only two gainers on the day, while another 140 codes hit their floor prices.

Ninh continued to assert that the difficulties were temporary and the Government was trying its best to stabilise and encourage the recovery and development of the stock market.

"Domestic investors who have bartered away a mass of shares will now have greater influence on the stock market," Ninh predicted.

He reminded investors that, although curbing inflation was the top official priority currently due to its strong influence on the economy and society as a whole, the stock market would continue to play a vital role in the development of the economy.

In Ha Noi yesterday, the HASTC-Index closed down 2.46 points, or 1.82 per cent, to 132.75, its fourteenth consecutive day of losses, during which period the index has lost a whopping 25 per cent of its value.

Trading volume also saw a decline of 18 per cent yesterday, with only a measly 933,940 shares changing hands, for a total value of VND31.7 billion ($1.98 million).

Asia Commercial Bank was the most-active share on the Ha Noi bourse yesterday, at over 200,000 traded, but still closed at its floor price of VND57,500.

Foreign investors were net buyers, but of only 63,000 shares, a drop of 71 per cent from foreign investor activity on Tuesday.

PetroVietnam Insurance (PVI) still manage to lure foreign investors, but at a volume about one-fifth of Tuesday’s.

Lilama, SHB bank reach cooperation deal

Thursday, May 22, 2008
The Vietnam Machinery Erection Corporation, known as Lilama Corp, and the Saigon-Hanoi Commercial Joint Stock Bank (SHB) have reached an agreement on their long-term, comprehensive cooperation.

Under the agreement, signed in Hanoi on May 22, SBH will give Lilama and its subsidiaries loan priority while Lilama pledges to use the bank’s services, including international and salary payments and share and bond issuances.

The two sides also agreed to focus their cooperation in constructing power plants, trading centres and office buildings for rent.

Commercial Banks rush to lift interest rates

Thursday, May 22, 2008
Commercial banks pushed up deposit interest rates on May 21, to above 15% per annum just two days after the State Bank of Viet Nam announced new interest rate regulations based on the newly imposed 12% basic interest rate.

Saigon-Hanoi Commercial Joint Stock Bank (SHB) said as from of May 21, its depositors will enjoy a 14.5% interest rate for 1-2 month terms, 15% for the 4-13 month terms and 13.5% for 24-36 month terms.

Southeast Asian Commercial Joint Stock Bank (SeABank) meanwhile raised their annual deposit interest rate for a 14 month term to 15.6%, the highest deposit rate so far among commercial banks.

Six to nine month terms at the bank now have an interest rate of 15.36% and under six month deposits will get 15%.

Two days before, An Binh Bank (ABBank) offered a peak annual interest rate of 14.4% for deposits of more than 13 months, while Dai Duong Commercial Joint Stock Bank (OceanBank) increased its annual interest rate for 12-13 month deposits to the maximum 15%.

Oriental Commercial Bank (OCB), Viet Nam Commercial Bank for Private Enterprises (VP Bank) and Nam Viet Commercial Joint Stock Bank (Navibank) have also lifted their deposit interest rates to the 15% limit.

Banking analysts predicted the common deposit interest rate will range between 13.5-15%, depending on short or long term strategies of local banks. They said a new wave of interest rate increases was possible, but a prolonged race like earlier this year was unlikely.

According to the central bank’s regulations, deposit interest rates offered by local commercial banks are not permitted to exceed 150% of the basic interest rate.

May 22, Foreigners Net Buyers Of VND113 Billion Of Shares

Thursday, May 22, 2008
(Dow Jones)- Foreign investors were net buyers of VND113 billion ($7.07 million) of Vietnamese stocks Thursday, out of a total of VND487 billion traded, the Ho Chi Minh Securities Trading Center said.

Volume traded totaled 2.88 million shares, with foreigners accounting for 36%, the stock market operator said.

Investment funds cutting investments

Thursday, May 22, 2008
Investment funds have become more cautious in making investment deals, though most of them still have good thoughts about the bright prospects of Viet Nam’s economy and stock market.

The strategy of private investment funds or investment companies is to buy stakes of companies to become strategic shareholders with the hope of taking back capital within several years. In general, the investors choose operational companies, which have been showing good business results, to inject money in.

Last year, when Viet Nam was considered the hot spot for investments, a lot of foreign private investment companies eyed the market, looking for companies to inject money in. However, many investment funds did not find their opportunities in Vietnam as they believed that the share prices were too high.

However, nowadays, the overly low share prices also proven to be an unattractive call for the investment flow, though Vietnamese private companies are very thirsty for capital and ready for receiving capital. The fact that Standard & Poor’s lowered Vietnam’s credit rating from stable to negative has dampened many investors’ enthusiasm. Many of them have been trying to sell stocks.

Foreign investment funds in Vietnam like Dragon Capital and VinaCapital have also been cutting investments. Andy Ho, Managing Director of VinaCapital, said that the fund is still seeking new investment opportunities, but it has become more cautious with the deals as the current economic difficulties also mean higher risks for investments.

“We have talked with many companies which want capital. However, we have to think carefully before making investment decisions,” Ho said, adding that previously, the fund invested 10 VND, and now it invests 3 or 4 VND only.

Nguyen Bao Hoang, General Director of IDG venture fund, which has poured money into 33 companies, said that there will be no changes in Vietnam’s economic development in the long term; however, the national economy is facing difficulties for now and the next 12 months.

One of the reasons that makes private investments scarcer at this moment is the uncertainty of the financial market. Analysts said that the low liquidity has been the biggest problem which has made investment funds hesitate to inject money in projects. Therefore, even the companies with low prices cannot attract the investment funds. The companies, which have been operating well do not really have financial difficulties, while the companies which need a lot of capital always bring high risks.

Hoang said that last year, financial investors seemed to ‘go too fast’, while they are now going too slowly as they have become too cautious. Hoang said that now is the most suitable time to buy stakes. (SGTT)

May 22, Stock market sees 14th consecutive decline

Thursday, May 22, 2008
The Ho Chi Minh City Stock Exchange (HOSE) continued falling, marking the 14th consecutively decreasing session. The VN Index dropped another 7.00 points or 1.58% to close at 434.75 pts with the total matching order trade of over 2.9 million shares and fund certificates worth 125 billion dong. After 13 declines, the VN Index lost 87.61 points in total.

Among 151 shares and three fund certificates being listed on the southern bourse, the stock market saw three shares increasing, four others stood still, two with no trades and 145 shares decreasing with most decliners reaching the floor price.

Three gainers were CII, HMC and SSC when adding 300 dong and HMC hit the ceiling price.

Two shares with no trades were ST8 and TCT.

DPM continued reaching the biggest trading volume with 483,300 shares, followed by DPR with 350,360, PVD with 155,050, SBT with 152,980, MPC with 131,380, SSI with 117,330, VIC with 90,660, IFC with 85,830 and others like ITA, HPG, KDC, NKD and ANV.

Foreign investors bought 60 share codes and two fund certificates with the total volume of 592,400 shares, of which DPM with 524,140 shares, SSI with 301,460, PPC with 200,200, PVD with 190,860, DPR with 190,200, MPC with 128,500, HPG with 104,170 shares being transferred and others like VIC, VSH, ITA and KDC.

The Hanoi Securities Trading Center (HaSTC) today May 22 still kept decreasing impetus on the stock market by falling another 2.4 points or 1.81% to end at 130.35 pts with the total market trade of 481,000 shares worth over 12 billion dong.

Amongst 137 listed shares on the northern bourse, the stock market recorded six shares increasing while 91 others decreasing, one share stood still and 39 shares with no trades.

Six gainers were YBC rose 500 dong, NVC and VTS increased 400, CTB up 300 dong, S99 +200 and L62 added 100 dong.

One share remained unchanged namely PPG.

MIC was the biggest loser when losing 2,700 dong, followed by ACB lost 1,700, BVS and VSP slipped 1,500, SCJ jumped 1,400 and NBC dropped 1,200 dong.

There were no shares reaching the trading volume of over 100,000 shares. TBC reached the biggest trading volume with 52,000 shares, followed by SVC with 44,200 and S99 with 40,400 shares being traded.

Military Bank to boost charter capital

Thursday, May 22, 2008

Military Bank to boost charter capitalMilitary Commercial Joint Stock Bank’s shareholder meeting on May 20 resulted in a decision to raise the bank’s charter capital to 3.4 trillion VND (212.5 million USD).

The bank will also increase total assets to 46.5 trillion VND (2.9 billion USD), 1.5 times higher than last year.

The charter capital increase will be carried out in four phases.

Interfood sets up three subsidiaries

Thursday, May 22, 2008
The Ho Chi Minh City Stock Exchange (HOSE) on May 20 reported that International Food Joint Stock Co (Interfood) has received investment licenses for its three subsidiaries including International Food Packaging Joint Stock Co (Interfood Packaging) with the total investment capital of 513.6 billion dong and chartered capital of 160.05 billion dong. Of which, Interfood holds 90% of total shares.

Interfood Packaging is expected to start operation by February 2009.

The second one is the Northern International Food Joint Stock Co (Northern Interfood) with the total investment capital and chartered capital of 583.2 billion dong and 178.2 billion dong respectively. Of which Interfood also owns 90% of chartered capital. The company plans to begin operation by March 2009.

The last one is Ava Food Joint Stock Co, which was transferred from Ava Food Industry Joint Stock Co with the total investment capital and chartered capital of 259.2 billion dong and 81 billion dong respectively. In which, Interfood owns 90% of total shares.

Work starts on Lu Gia apartment, office project

Thursday, May 22, 2008
Lu Gia Mechanical Electric Joint-Stock Co commenced work on a 20-story apartment and office building in HCM City's District 11, which will cost 357 billion dong, or some US$22 million.

The Lu Gia Plaza at 70 Lu Gia Street will have 166 apartments covering 69157 square metres each, and more than 4,200 square metres of office space will be available for lease, said the developer, which is a venture between Lu Gia Mechanical Electric Joint-Stock Co holding a 75% stake and the HCM City Infrastructure Investment Joint Stock Co (CII).

The building will include a shopping mall, a restaurant, a games section and internet cafe, a beauty salon and fitness centre on the ground and first floors. Other amenities include gas supply, water heating, television, telephone and internet lines, as well as fire fighting systems.

The two companies will build some public facilities like an international standard kindergarten, sports facility and park, said the two companies.

It will be finished after three-years of construction, said the developer. This is the first luxury apartment building invested by Lu Gia Mechanical Electric Joint-Stock Co and it will be ready by late 2010.

The project site was formerly the premises of a factory of Lu Gia Mechanical Electric Joint-Stock Co The factory will be relocated to the southern province of Dong Nai, as Lu Gia early this month started work on a workshop at Nhon Trach 5 industrial park in the province with the investment capital of 55 billion dong.

REE reports 1.27b dong loss in Apr

Thursday, May 22, 2008
The Ho Chi Minh City Stock Exchange-listed Refrigerating and Electrical Engineering Shareholding Co (coded REE) recently reported the business result in April with 140.53 billion dong in total net revenue and lost 1.27 billion dong from after tax profit.

During the first four months of this year, REE made a total net revenue of 438.6 billion dong, equalling to 39.87% of the year's plan and lost 107.47 billion dong from after tax profit.

VIBBank hikes saving rates

Thursday, May 22, 2008
Vietnam International Commercial Joint Stock Bank (VIBBank) announced that from May 20, it officially increased the interest rates of both dong and US dollar.

Accordingly, VIBBank's 12-month term saving rates will be 15% a year in dong and 6.5% pa in US dollar, nine months 14.5% and 6.8% pa, six months at 14.5% and 7.0% pa, three months at 14.5% and 6.8% pa and one-month at 13.5% and 6.5% pa respectively.

Recently, the bank launched the programme of "close customer care" to all individual customers whereby as for each saving worth one million dong within one-month, saver will receive 50 bonus points. The bonus points will be added together and converted to valuable presents.

Eximbank increases deposit rates

Thursday, May 22, 2008
From May 20, Viet Nam Export Import Commercial Joint Stock Bank (Eximbank) officially applied the new interest rates of dong, US dollar and gold. In comparison with the previous benchmark the new interest rates were raised by 0.225% per month in dong, 1.3% per year in US dollar and 1.5% per annum in gold.

Particularly, the interest rates of dong are ranged between 1.167% and 1.183% per month. Accordingly, 1, 2, 3 and 6 month terms will get the interest rate of 1.167% per month, nine and 12 months 1.183% per month.

As for US dollar deposits, the interest rates are ranged between 6.5% and 7% per year. In particular, the interest rate for one-month term is 6.5% per year, two months 6.6%, three months 6.8% and 6, 9 and 12 months 7% per year.

Also, the interest rate of gold was increased to 3.5%-5.5%. The interest rate difference between terms is by 0.5% per year.

In addition, the bank still applies the progressive interest rates for savings worth at least 100 million dong, US$5,000 and 10 ounces of gold and higher, marking the highest level of the bank so far.

Ending four first months of this year, the bank gained 347 billion dong from pre tax profit, 38.791 trillion dong in total asset, 26.150 trillion dong in total deposits and 21.953 trillion dong in total outstanding loans.

As the plan, Eximbank could reach between 1.3 and 1.5 trillion dong in profit within this year, nearly twofold increase against 2007.

Eximbank's shareholders' meeting recently also passed the plan to hike its chartered capital to 7.38 trillion dong from the current of 2.8 trillion dong within this year.

VFMVF1 price closes to face value

Thursday, May 22, 2008
VFMVF1 coded fund certificate yesterday remained at 11,700 dong each after 12 consecutive declines. However, according to the report on May 15, the net asset value (NAV) of each VF1 fund unit still reached 20,661 dong.
Therefore, VFMVF1 is being traded under far its NAV.
As compared with May 8, the NAV decreased nearly 8%.
Similarly, the price of MAFPF1 yesterday stood at 5,600 dong each against the NAV of 6,100 dong/unit reported on May 15.

Vinaconex No 9 to list shares on HaSTC

Thursday, May 22, 2008
Vinaconex's Construction Joint Stock Co No 9 recently passed the plan to list shares on Hanoi Securities Trading Center (HaSTC) in the last half of the year.

This year, the company targets 380 billion dong in revenue, up 35% on 2007 and 16.1 billion dong from pre tax profit, rising 79% against the previous year and a dividend of 14%.

Song Da 6 to pay dividend of 15% in cash

Thursday, May 22, 2008
Song Da 6 Joint Stock Co (coded SD6) announced that the company plans to pay a 2007 dividend of 15% in cash on June 20. The registration deadline is on May 30.
The securities depository centre will halt the deposit of SD6-coded shares on May 29, 30 and June 2

VinaCapital buys over 30% into MobisCom

Thursday, May 22, 2008
The DFJ VinaCapital Investment Fund— DFJV, the investment firm specialises in technology information sector, on May 20 singed an investment cooperation contract with MobisCom Co, the multimode security solution provider to transactions via cell phone whereby DFVJ will hold 30% stake in MobisCom. The value of the contract has not been revealed yet.

At present, MobisCom is developing an international unique technology product named OTAC (One Time Authentication Certification) enabling users to carry out transactions safely and usefully via sending messages or connecting to WAP and mobile phone network system, hand-held equipments and individual computer.

Together with OTAC and MobisStock, MobisCom plans to launch other solutions like MobisPay and MobisBank.

In the third quarter of this year, MobisCom plans to inaugurate new product named MobisCafe.