Top 10 Viet Nam stock market events of 2017

A number of listed businesses have seen their market value swell by additional US$1 billion each in 2017. - Photo bizlive.vn

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 Viet Nam’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 Ha Noi 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, Viet Nam’s benchmark VN-Index reached a decade-high of 970 points on December 4, a gain of 46 per cent over the end of 2016.

Viet Nam’s stock market capitalisation hit VND3.36 quadrillion (US$147.4 billion) in 2017, up 73 per cent from 2016-end, and equivalent to 74.6 per cent 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 US$1 billion, 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

2017 has witnessed the strongest-ever trading by foreign investors with total net buy value of reaching nearly VND26 trillion ($1.2 billion), exceeding the peak of over VND24 trillion recorded in 2007.

Ending November, the total value of foreign portfolios hit $31.4 billion, up 81.3 per cent over the end of 2016.

5. FLC chair sells 8.93% capital under the counter

On November 10, the State Securities Commission (SSC) slapped a fine of VND65 million ($2,850) 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 per cent 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 Ha Noi 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 VND600 billion on individual investor Do Thi Cam Thuy for distorting prices of Split Stone JSC’s shares on the Ha Noi 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 Ha Noi’s 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 per cent stake of brewer Sabeco (SAB) worth VND110 trillion and a 3.33 per cent stake of dairy giant Vinamilk (VNM) worth VND8.99 trillion.

10. Spectacular bond market growth

The bond market has become more active with total listing value topping VND1 trillion, up 8 per cent over 2016 and equal to 23 per cent of nation’s GDP. The average trading value was VND8.9 trillion per session, up 38 per cent year-on-year.

This year also witnessed success in Government bond (G-bond) auctions with about VND189 trillion ($8.3 billion) worth of G-bonds bought.