The Securities Journalists Club (SJC) on December 27 announced the top 10 events of Vietnam’s stock market in 2017, a year of many new records.
1. Inauguration of the derivatives market
On August 10, Deputy Prime Minister Vuong Dinh Hue pressed the button to launch the derivatives market, marking a milestone in the development of Vietnam’s securities market.
The derivatives market, starting with the VN30-Index future contracts first, was hailed as an important component to completing the structural development of the financial market as well as key part of the development strategy for the securities market in the future.
The market, managed by the Hanoi Stock Exchange, saw over 946,300 contracts traded and 15,800 trading accounts set up over the past two months.
2. VN-Index hits decade-high
After being hit hard by the global financial crisis in 2008 when foreign capital fled, Vietnam’s benchmark VN-Index reached a decade-high of 970 points on December 4, a gain of 46 percent over the end of 2016.
Vietnam’s stock market capitalisation hit 3.36 quadrillion (147.4 billion USD) in 2017, up 73 percent from 2016-end, and equivalent to 74.6 percent of the nation’s gross domestic product (GDP). This number has surpassed the Government’s target (market cap to GDP ratio) set for 2020.
3. Listings of banks and billion-dollar companies
Five banks have debuted shares on the securities market this year, lifting the total number to 13 out of over 30 joint-stock commercial banks nationwide. Some banks have been granted transaction codes and are going through final procedures to trade shares in early 2018, like Bac A Bank, Techcombank and TPBank.
In addition, a number of listed businesses have seen its market value swell by an additional 1 billion USD, like Vinamilk (VNM), VinGroup (VIC), PV Gas (GAS), Sai Gon Beer-Alcohol-Beverage Corporation (SAB), steelmaker Hoa Phat Group (HPG) and FLC Faros Construction JSC (ROS).
4. Foreign traders buy total net value of 1.2 billion USD
2017 has witnessed the strongest-ever trading by foreign investors with total net buy value of reaching nearly 26 trillion VND (1.2 billion USD), exceeding the peak of over 24 trillion VND recorded in 2007.
Ending November, the total value of foreign portfolios hit 31.4 billion USD, up 81.3 percent over the end of 2016.
5. FLC Chair sells 8.93 percent capital under the counter
On November 10, the State Securities Commission (SSC) slapped a fine of 65 million VND (2,850 USD) for Trinh Van Quyet, Chairman of real estate giant FLC Group (FLC), for failing to report sale of 57 million shares, equivalent to 8.93 percent of the company’s capital, from October 20-24.
6. Criminal prosecution for share price manipulation
On December 4, Nguyen Van Giang, former Director of DongA Securities Co Ltd’s Hanoi branch, was indicted for manipulating share prices of Consultancy Design & Urban Development JSC (CDO) on the HCM Stock Exchange.
SSC also issued a fine of 600 billion VND on individual investor Do Thi Cam Thuy for distorting prices of Split Stone JSC’s shares on the Hanoi Stock Exchange.
7. 15 audited financial statements not accepted
For the first time, audited financial statements for 2016 of 15 listed companies including KLF Joint Venture Global Investment JSC (KLF), Song Da Investment and Construction JSC (SDD), CMC Investment Joint SJC (CMC) and Hung Long Mineral and Building Material JSC (KHL) were not accepted by the SSC.
The auditing company, Thang Long Auditing and Valuation Co Ltd, was suspended from working in the securities industry.
8. Sacombank plans to move the listing exchange
After taking the hot seat in Sacombank (STB) in June, Chairman Duong Cong Minh surprised shareholders by announcing a plan to moving its listing from the HCM Stock Exchange to the Hanoi bourse and changing its stock code from STB to SCM on feng shui (geomancy) considerations. However, the bank’s shareholders did not approve of this plan.
9. Year of record share sales
2017 marked a number of successful State capital divestments, including a 53.6 percent stake of brewer Sabeco (SAB) worth 110 trillion VND and a 3.33 percent stake of dairy giant Vinamilk (VNM) worth 8.99 trillion VND.
10. Spectacular bond market growth
The bond market has become more active with total listing value topping 1 trillion VND, up 8 percent over 2016 and equal to 23 percent of nation’s GDP. The average trading value was 8.9 trillion VND per session, up 38 percent year-on-year.
This year also witnessed success in Government bond (G-bond) auctions with about 189 trillion VND (8.3 billion USD) worth of G-bonds bought.
VNA
