The VN Index continuously broke records, unlisted public companies (UpCom) market has become operational, and securities investors now have to pay personal income tax. These and more have been cited by VnMedia as the outstanding features of the stock market in 2009.
VN Index breaks a lot of records
Due to the 2008 financial storm and the tightened monetary policy, the stock market fell sharply in the first months of 2009 to the deepest low in the last four years, reaching 235.50 points on February 24.
The stock market has recovered with the Government’s demand stimulus package. The VN Index has increased continuously, climbing to a new peak at 628.92 points on October 23. Many trading volume records have been broken with the trading volume of up to 133.4 million stocks worth six trillion dong per trading session.
UpCom put into operation
On June 24, the Hanoi Stock Exchange officially put UpCom, the market of unlisted public companies, into operation.
UpCom now has 30 enterprises putting their shares into transactions on the market after six months of operation. The total value of shares registered for transactions is 2,950 billion dong and the market capitalization value of 3,800 billion dong.
Personal income tax (PIT) on securities investors
The PIT imposition has been approved and will be officially implemented on January 1, 2010. Securities investors will have to pay either 20 percent on their taxable income or 0.1 percent on their stock prices.
Hanoi Stock Exchange set up
On June 24, the Hanoi Stock Exchange (HNX) was officially established on the basis of the Hanoi Securities Trading Centre. HNX is operating under the mode of the one member state-owned limited company with chartered capital of one trillion dong.
Making its debut on July 14, 2005 with just six listed companies, HNX now has 240 listed companies and 98 member securities companies and 600,000 investors’ transaction accounts. HNX has the total market capitalization value of 135,500 billion dong, or nearly 10 percent of GDP.
Rumors that most affected the market
2009 is the year when the stock market suffered the biggest influences due to rumor-mongering. 30 percent of listed companies were subjects of speculation and a lot of false rumors adversely affected investors and caused chaos.
The State Securities Commission had to correct the information and advise them to be wary of rumors.
A company abrogates its share listing
6.84 million shares of Bach Tuyet Cotton Company have been removed from listing on the HCM City Stock exchange since August 7 because the company could not meet the requirements on actual chartered capital.
A business must have 80 billion dong in chartered capital to be able to list on HCM City bourse, while the company had 68.4 billion dong only.
Dividends coming soon
All listing companies want to pay dividends soon in order to avoid taxes. From January 1, 2010, all the income from dividends will be charged personal income taxes of five percent.