SBS under scrutiny for heavy loss

July 24, 2012 | 09:29

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Sacombank Securities Company (SBS) will be put into the watch list from Monday, so its shares will be traded for a mere 15 minutes in the regular order matching phase to set a daily closing price, according to a Ho Chi Minh Stock Exchange (HOSE) notice.

HOSE said the move was aimed at protecting the interests of investors as SBS had racked up losses of over VND1.4 trillion as of the end of March, exceeding its equity, while its financial status has yet to be fully explained.

The broker has told local media that it is in the restructuring process. It has hired Ernst & Young to do a special review to find out what had caused the losses and propose solutions to coping with it. SBS also plans to delist from HOSE.

SBS, which has total chartered capital of over VND1.2 trillion and is in the top 10 stock brokerages by capital, has incurred losses due to high bank interest rates and sharp declines of the stock market.

SBS debuted on HOSE on July 5, 2010 at VND42,000 each. Closing on Sunday’s session, it plunged to the floor price of VND3,300, or 13 times lower than the starting price.

SaigonTimes

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