Many securities firms suffered loss in 2010 and in first quarter of 2011. The leaders of those securities companies are seeking solutions to over come the long-lasting difficult period.
Sharing with the shareholders in the 2011 AGM held on April 28, 2011, Nguyen Duy Hung, chair of management board cum general director of Saigon Securities Inc (coded SSI) said that if inflation continued in Q2, and the bank didn’t lower the interest rates, 2011 would be the difficult year for Vietnamese economy and stock markets.
The stock brokerage firm also worked out the 2011 business plan in which the targeted revenue and profit decline in comparison with that of 2010. The company noted that the business targets were calculated in case there was less change in the stock market. If the market liquidity was lower than 1 trillion dong per session, SSI may not only fail to complete the targeted plan but also suffer from loss.
Many securities firms have submitted to the shareholders various business plans, depending on the market conditions. Previously, VNDirect Securities Co (coded VND) had proposed two targeted profit plan. In case there were favourable conditions in stock market and the company didn’t need to set up standby fund for price reduction, the company set targets to gain revenue of 271 billion dong and after tax profit of 150 billion dong. On contrary, if the stock market declined by 15 percent against that of Q1, the targeted profit slumped by one third or 47 billion dong.
In order to avoid risks, some securities firms decided to withdraw capital in their investment portfolio. In the first three months of this year, SSI has already withdrawn about 600 billion dong from short-term financial projects. In March, VND also accepted to suffer loss of 15 billion dong to reduce financial investment risk.
Apart from SSI, other stock companies such as VNDirect, Thang Long Securities Co also worked out plan to change the self-trading activities for the fund management firms.
Recently, SSI released the plan of using the company’s foreign investment fund for purchasing real estates in the US. Nguyen Duy Hung showed optimistic attitude that if SSI invested $ million in the US, the company can bring in profit of $5,000 per month.
Similarly, Wall Street Securities Co (WSS) in 2011 also focused on real estate projects in Dai La, Ngoc Lam and Duc Giang, as well as other long-term real estate investment projects. The company expected to gain revenue of 50 billion dong from real estate projects, accounting for 40 percent of the total revenue. Meanwhile, the company’s brokerage revenue was supposed to count for 9.6 percent.
Sacombank Securities Co (SBS) planned to expand the market. Nguyen Ho Nam, SBS’ chair of management board revealed that the company expected to gain 40-50 percent of the total revenue in 2011 from Laotian markets.
Au Viet Securities Co would focus on developing the company’s banking and investment sectors such as financial consultancy services, M&A consultancy.
Meanwhile, at present HCM City Securities Co (coded HCM) planned to spend 300-400 billion dong on stock investment. In the coming share issuance to raise chartered capital, HCM planned to spend most of the raised capital for self-trading activities.