SSI Securities Corporation reported pre-tax profits of VND239.2 billion (US$10.27 million) on revenues of VND743.5 billion ($31.9 million) in the second quarter of the year. Capital and financial trading activities remained highly lucrative, with revenues rising by 52 per cent year-on-year to VND265.78 billion.
The company remains the broking leader on HOSE for a sixth straight year with a 13.15 per cent market share and on the Ha Noi Stock Exchange with a 11.11 per cent share.
First half revenue and pre-tax profit were VND1.5 trillion and VND510 billion, lower than expected but not too bad considering the market situation.
In the second quarter the market continued to remain volatile as the VN-Index subsided by 3.14 per cent from the end of the first quarter. Liquidity was down 40 per cent, with total trading value falling to VND4.325 trillion.
Foreign investors sold stocks worth VND921 billion on HOSE in contrast to their net buying of VND2.22 trillion in the previous quarter.
The reduced liquidity was the main reason for a significant reduction in brokerage, margin lending and cash advance transactions compared to a year earlier, the company said.
But, despite falling short of first half targets, “The Board of Directors of SSI does not intend to adjust the business plan for 2019,” Nguyen Duy Hung, SSI chairman and general director, said.
With the steady growth reported by leading local businesses, the EU-Viet Nam free trade agreement opening opportunities for export to the EU, the return of foreign capital, and the country’s steady economic growth, SSI said the market would recover in the second half of the year.