20 Vietnam Securities Firms Suffer Losses in 2010
The State Securities Commission (SSC), Vietnam’s stock market watchdog, said that 20 securities companies incurred losses last year, compared to more than 60 in 2009.
During the year, brokerage firms reduced securities trading activities and focused on providing consultancy and brokerage services, so the number of loss-making firms is lower, the Dau tu Chung khoan newspaper reported Monday, citing the SSC.
Since June 2010, the commission had requested local securities firms to make reports on their financial safety ratio in line with international standards. Those offering high financial leverage services incurred high risks.
The prolonged declines of the stock market were also blamed for poor earnings results of brokers because many still spent much money in trading shares.
Ending 2010, the VN-Index fell 2%, but the loss was up to 14.26% when it touched the year’s record low at 423.89 points on August 25.
The SSC has submitted a decree on ensuring financial safety at securities firms to the Ministry of Finance for an approval this year.
Vietnam has 105 securities firms, most of which are small-sized. Top ten brokers on the Hochiminh Stock Exchange held a combined 52.76% market share in the fourth quarter of last year, while the remaining 95 companies shared 47.24%. (Securities Investment)
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