Total financial support for investors at securities firms hit nearly 34tr dong

Till late the first quarter of 2011, if securities firms had used all the money in their accounts, after exclusion of investors’ money to pay the debts that come due, the total outstanding loans left would have been at about 20 trillion dong, according to Thoi Bao Kinh Te Saigon newspaper on June 6.

In May, the stock market witnessed a series of bad trading days as the VN Index dropped for nine consecutive sessions, HNX marked its lowest level since its establishment. There were suggestions that the main cause was from mortgage-backed securities releases, starting by VN Index dropping below the tolerance threshold, while investors and securities companies were facing pressure on bank solvency.

Based on combined data of 46 securities companies with chartered capital of 200 billion dong each, in late 2010, this debt of securities firms shot up from 27 trillion dong to over 47 trillion dong, increasing 72.15 percent compared with early 2010, primarily due to increased short-term loans.

The additional loan amount of securities firms in 2010 was mainly used for activities which supported investors and securities portfolios. Of the additional 20 trillion dong of loans, securities firms spent 16 trillion dong to increase capital support for investment and over 4 trillion dong to invest in stocks and bonds trading.

As of early 2011, the total funds of securities companies to support investors had reached nearly 34 trillion dong, in which the amount of capital to support trading of listed securities was essential, with about 19 trillion dong, equivalent to 56.9 percent. – TBKTSG

Tags: vietnam stock, Vietnam stock market, VNindex

Posted by VBN on Jun 8 2011. Filed under Stock. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry