boiman
02-01-2009, 07:40 PM
The Securities Journalists Club, with members from more than 20 press agencies nationwide, announced on Tuesday the ten most outstanding events for the domestic stock market during the year.
1 – Stock indices decline nearly 70 per cent
In 2008, the stock market experienced the worst developments in its eight years of operation.
In 2008, the stock market experienced the worst developments in its eight years of operation. Stock indices declined sharply in both northern and southern exchanges. The HASTC-Index lost 67.2 per cent, and the VN-Index slid 66.9 per cent over the year.
The HASTC-Index, in particular, fell below its starting point of 100 points on November 27.
2 – Vietinbank succeeds in making IPO
VietinBank’s initial public offering (IPO) was successful on Christmas Day, as all 53.6 million shares were sold at an average price of VND20,265 (US$1.2) per share, up slightly from the VND20,000 reference price set prior to the auction.
With the stock market downturn, 2008 marked a year of failures in equitisation and enterprises’ issuance, as many IPO plans failed due to the lack of investors, and many listed firms cancelled issuance plans for increasing capital.
3 – Bach Tuyet Cotton posts profits while suffering losses
On July 11, transactions for shares of Bach Tuyet Cotton Joint Stock Co (BBT), a HCM City Stock Exchange listed company, were suspended, because the company suffered losses in two consecutive years (2006 and 2007) and was on the edge of bankruptcy.
Audited financial reports had falsely shown that the company was profitable, netting VND2.25 billion ($136,360) in 2006 and VND3 billion ($181,820) in 2007. In actuality, combined losses exceeded VND17 billion ($1 million).
Never before in Viet Nam had the accuracy of a company’s audited financial reports raised so much concern, and never before has the quality of auditing companies come under such heavy fire, as a result of the problem.
4 – Investors’ accounts were required to be separated
Securities firms were required to pass investors’ accounts to banks to manage on October 1, 2008 at the latest. However, there have been only 77 firms in compliance thus far.
The separation of investors’ accounts was to increase transparency in securities firms’ business activities.
5 – UPCoM market has legal framework
On November 20, the Ministry of Finance issued regulations on the organisation and management of the unlisted public company market (UPCoM)’s securities trading on the Ha Noi Securities Trading Centre.
The move is expected to enhance transparency, publicity and safety in securities transactions.
6 – Hundreds of enterprises were punished
In 2008, the State Securities Commission meted out serious administrative punishment for the first time for 136 cases of organisations and individuals violating laws on the IPO, public disclosure and insider trading.
The total value of fines handed over to the State came to about VND4.24 billion ($250,000) in the year.
7 – Personal income tax is applied for securities investment
The imposition of new income and capital gains taxes on securities drew much attention and raised much controversy throughout 2008.
Securities investors are to be charged with the taxes starting yesterday, as part of the Law on Personal Income Tax which became effective.
8 - Rumours prevails
The year witnessed many rumours about enterprises and company leaders, which badly affected the market.
Most recently, VNDirect Joint Stock Co witnessed on-line reports saying that the company could not pay its debts and had filed for bankruptcy; while Hoang Anh Gia Lai Co chairman Doan Nguyen Duc was said to be investigated and forbidden from leaving Viet Nam because of debts.
Both denied the rumours.
Among the Government’s measures to stabilise the stock market in 2008, was to regulate agencies co-operation with press agencies to provide accurate information.
9 - Asean Securities discusses dissolution
On December 2, 2008, for the first time in the history of the domestic stock market, officials of a securities company - Asean Securities - officially met to discuss company dissolution.
The case is an example of the impacts of the stock market’s decline on securities firms, and sounds the alarm about too many securities firms joining the stock market, said the journalists club.
At the end of December, there were 102 securities companies in Viet Nam, 24 of which were established in 2008.
10 - The domestic market "travels with" the US market
For the first time, the local stock exchange witnessed the same ups and downs as the US market starting around September 15, 2008, in the context of the global financial crisis. Domestic investors, instead of looking into company’s financial reports, have shifted their interest to the moves of the US stock indices.
The US financial crisis has had huge impacts on the global markets, including Viet Nam - especially since the country has become a member of the World Trade Organisation, said the club.
Most experts agree that the domestic market’s rally in 2009 depends mainly on two factors: domestic enterprises’ inner strength, and the rallies of major stock markets in the world, especially the US market.
1 – Stock indices decline nearly 70 per cent
In 2008, the stock market experienced the worst developments in its eight years of operation.
In 2008, the stock market experienced the worst developments in its eight years of operation. Stock indices declined sharply in both northern and southern exchanges. The HASTC-Index lost 67.2 per cent, and the VN-Index slid 66.9 per cent over the year.
The HASTC-Index, in particular, fell below its starting point of 100 points on November 27.
2 – Vietinbank succeeds in making IPO
VietinBank’s initial public offering (IPO) was successful on Christmas Day, as all 53.6 million shares were sold at an average price of VND20,265 (US$1.2) per share, up slightly from the VND20,000 reference price set prior to the auction.
With the stock market downturn, 2008 marked a year of failures in equitisation and enterprises’ issuance, as many IPO plans failed due to the lack of investors, and many listed firms cancelled issuance plans for increasing capital.
3 – Bach Tuyet Cotton posts profits while suffering losses
On July 11, transactions for shares of Bach Tuyet Cotton Joint Stock Co (BBT), a HCM City Stock Exchange listed company, were suspended, because the company suffered losses in two consecutive years (2006 and 2007) and was on the edge of bankruptcy.
Audited financial reports had falsely shown that the company was profitable, netting VND2.25 billion ($136,360) in 2006 and VND3 billion ($181,820) in 2007. In actuality, combined losses exceeded VND17 billion ($1 million).
Never before in Viet Nam had the accuracy of a company’s audited financial reports raised so much concern, and never before has the quality of auditing companies come under such heavy fire, as a result of the problem.
4 – Investors’ accounts were required to be separated
Securities firms were required to pass investors’ accounts to banks to manage on October 1, 2008 at the latest. However, there have been only 77 firms in compliance thus far.
The separation of investors’ accounts was to increase transparency in securities firms’ business activities.
5 – UPCoM market has legal framework
On November 20, the Ministry of Finance issued regulations on the organisation and management of the unlisted public company market (UPCoM)’s securities trading on the Ha Noi Securities Trading Centre.
The move is expected to enhance transparency, publicity and safety in securities transactions.
6 – Hundreds of enterprises were punished
In 2008, the State Securities Commission meted out serious administrative punishment for the first time for 136 cases of organisations and individuals violating laws on the IPO, public disclosure and insider trading.
The total value of fines handed over to the State came to about VND4.24 billion ($250,000) in the year.
7 – Personal income tax is applied for securities investment
The imposition of new income and capital gains taxes on securities drew much attention and raised much controversy throughout 2008.
Securities investors are to be charged with the taxes starting yesterday, as part of the Law on Personal Income Tax which became effective.
8 - Rumours prevails
The year witnessed many rumours about enterprises and company leaders, which badly affected the market.
Most recently, VNDirect Joint Stock Co witnessed on-line reports saying that the company could not pay its debts and had filed for bankruptcy; while Hoang Anh Gia Lai Co chairman Doan Nguyen Duc was said to be investigated and forbidden from leaving Viet Nam because of debts.
Both denied the rumours.
Among the Government’s measures to stabilise the stock market in 2008, was to regulate agencies co-operation with press agencies to provide accurate information.
9 - Asean Securities discusses dissolution
On December 2, 2008, for the first time in the history of the domestic stock market, officials of a securities company - Asean Securities - officially met to discuss company dissolution.
The case is an example of the impacts of the stock market’s decline on securities firms, and sounds the alarm about too many securities firms joining the stock market, said the journalists club.
At the end of December, there were 102 securities companies in Viet Nam, 24 of which were established in 2008.
10 - The domestic market "travels with" the US market
For the first time, the local stock exchange witnessed the same ups and downs as the US market starting around September 15, 2008, in the context of the global financial crisis. Domestic investors, instead of looking into company’s financial reports, have shifted their interest to the moves of the US stock indices.
The US financial crisis has had huge impacts on the global markets, including Viet Nam - especially since the country has become a member of the World Trade Organisation, said the club.
Most experts agree that the domestic market’s rally in 2009 depends mainly on two factors: domestic enterprises’ inner strength, and the rallies of major stock markets in the world, especially the US market.