Vietnam Regulator May Monitor Loss-making Stock Brokers
Vietnam’s State Securities Commission (SSC) may put special monitor, suspend operation or merge local securities companies depending on their size of last year’s loss, said SSC’s Vice Chairman Nguyen Doan Hung.
This is a move to keep close watch on brokers’ financial situations and protect investors during the market fall.
Nearly 70 per cent of 26 securities firms that have released last year’s business results reported losses in 2008 mainly due to the market slump, the Hanoi Securities Trading Center said.
The Hanoi-based BIDV Securities Co., a unit of the Bank for Investment and Development of Vietnam, posted a loss of VND554 billion (US$32.7 million), or 79 per cent of its registered capital, after making a VND633.5 billion for provision for securities losses.
Bao Viet Group’s Securities Co. lost VND452 billion due to stock investment, higher its capital of VND451 billion.
Horizon Securities and Nam Viet Securities suffered losses of VND8 billion and VND3.8 billion due to low revenues.
However, some still made profit despite huge securities investment loss, including Ho Chi Minh City Securities Corp. (HSC) with VND23.5 billion, Habubank Securities with VND10.5 billion.
Vietnam’s largest brokerage, Saigon Securities Inc. (SSI), posted an impressive profit of VND250.5 billion despite an extract of VND25.7 billion of provision for securities.
The VN-Index slumped 66 per cent last year and became the worst performer in Asia. Vietnam now has 103 securities firms. (Securities Investment)
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