Over half of securities brokerages and fund managers report losses

Up to 61 out of total 105 securities companies reported accumulated losses to the end of second quarter of 2011, similarly 27 of 47 fund management companies also posted poor performance in the period

Up to 61 out of total 105 securities companies reported accumulated losses to the end of second quarter of 2011, similarly 27 of 47 fund management companies also posted poor performance in the period, according to the State Securities Commission (SSC).he number of securities companies suffering losses increased from 20 in 2010 to 62 in the first quarter of 2011.

Lately, Saigon Securities Inc (SSI) announced an accumulated loss of 88 billion dong after a half of the year despite a profit of 11 billion in Apr-Jun. VNDirect Securities Co also estimated its loss at 60 billion dong in last quarter.

But, the SSC confirmed that the licensed brokerages all met financial safety standards (charter capital, working capital).

Similarly, 27 of 47 fund management firms posted poor performance with big losses. Only one fund raised its capital by 179 billion dong in the first six months of 2011. Previously, by late Q1, total NAV of these funds reached nearly 11.373 trillion dong, down 960 billion dong against last December.

The stock market regulator warned 10 brokerages with big losses (equaling to over 30% of charter capital) to be cautious in investment and risk administration with proper roadmap.

The good news was that there had been total 1.1 million accounts so far, increasing 47,000 accounts over the end of 2010. In which, 4,500 accounts belonged to institutional investors.

Till late June 2011, the SSC granted business licenses to 54 unlisted public companies and 26 listed firms. Now the market has 1,667 public companies including 673 listed firms on both bourses and 127 on UPCoM. – Vietbiz24

Tags: vietnam stock, Vietnam stock market, VNindex