boiman
09-04-2009, 10:11 PM
Of 26 securities companies that have announced last year’s results, nearly 70 percent reported losses mainly because of the market slump, the Hanoi Securities Trading Center has said.
“Depending on how much loss brokerages made, they will be reprimanded, placed on a watch list, or forced to cut their services or merge...,” said Nguyen Doan Hung, Deputy chairman of the State Securities Commission.
The VN-Index, Vietnam’s major stock index, slumped 66 percent last year and was Asia’s worst performer. But the extent of losses reported by many of the securities companies is still shocking.
Hanoi-based BIDV Securities Company, a unit of the Bank for Investment and Development of Vietnam, posted a loss of VND554 billion (US$31 million), or 79 percent of its registered capital, after making a VND633.5 billion writedown for securities losses.
Hanoi-based Bao Viet Securities Company, whose registered capital is VND451 billion, lost VND452 billion due to the writedowns.
Some others attributed their losses to low revenues.
HCMC-based Horizon Securities, which posted a loss of VND8 billion, said its turnover was just VND2 billion.
Nam Viet Securities, also based in HCMC, reported a loss of VND3.8 billion on a turnover of VND277 million.
A few brokerages bucked the trend, however, making a profit despite huge writedowns.
Ho Chi Minh City Securities Corporation reported earnings of VND23.5 billion despite a VND200.6 billion provision for securities losses.
Habubank Securities earned VND10.5 billion after writedowns of VND52 billion.
Saigon Securities Inc., Vietnam’s largest brokerage, posted an impressive VND250.5 billion profit despite writing down VND25.7 billion.
Vietnam has around 103 securities companies in all.
“Depending on how much loss brokerages made, they will be reprimanded, placed on a watch list, or forced to cut their services or merge...,” said Nguyen Doan Hung, Deputy chairman of the State Securities Commission.
The VN-Index, Vietnam’s major stock index, slumped 66 percent last year and was Asia’s worst performer. But the extent of losses reported by many of the securities companies is still shocking.
Hanoi-based BIDV Securities Company, a unit of the Bank for Investment and Development of Vietnam, posted a loss of VND554 billion (US$31 million), or 79 percent of its registered capital, after making a VND633.5 billion writedown for securities losses.
Hanoi-based Bao Viet Securities Company, whose registered capital is VND451 billion, lost VND452 billion due to the writedowns.
Some others attributed their losses to low revenues.
HCMC-based Horizon Securities, which posted a loss of VND8 billion, said its turnover was just VND2 billion.
Nam Viet Securities, also based in HCMC, reported a loss of VND3.8 billion on a turnover of VND277 million.
A few brokerages bucked the trend, however, making a profit despite huge writedowns.
Ho Chi Minh City Securities Corporation reported earnings of VND23.5 billion despite a VND200.6 billion provision for securities losses.
Habubank Securities earned VND10.5 billion after writedowns of VND52 billion.
Saigon Securities Inc., Vietnam’s largest brokerage, posted an impressive VND250.5 billion profit despite writing down VND25.7 billion.
Vietnam has around 103 securities companies in all.