Restructuring, management and supervision of the stock market towards the openness and transparency will still remain a key objective in the market operation solutions in 2014, the State Securities Commission (SSC) gave at a meeting to summarise the market held on December 11, 2013.
Addressing at the meeting, minister of Finance, Dinh Tien Dung, agreed with the group of solutions given by the SSC, especially solutions to focus on developing the scale and the quality of the stock market.
In 2013, the macroeconomic factor had more positive changes, but the production and business operations of enterprises still faced many difficulties. The stock market still maintained its growth momentum whereby the trading value increased 31 percent and the VN Index gained 22 percent from 2012. Especially, in 2013, the total amount of proceeds via government-backed bonds on the stock market was very high, contributing to performing the state budget and finance tasks as assigned.
According to the statistics from the SSC, stock indicators all increased against the end of 2012 hereby the VN Index surged over 22 percent and the HNX Index gained 13 percent. The gains of indicators helped Vietnam become one of top ten countries with the strongest recovery in the world.
The market capitalisation in 2013 also soared compared to that of 2012, reaching about 964 trillion dong (rising 199 trillion dong from the end of 2012), equalling to 31 percent of the country’s gross domestic products (GDP).
The average trading scale reached 2.578 trillion dong per session, up 31 percent from 2012, mainly thanks to transactions of G-bonds. The average trading value for G-bond reached 1.257 trillion dong per session (up 90 percent) and the average trading value for shares and fund certificates reached 1.322 trillion dong per session, up slightly 1.5 percent from 2012.
Notably, in 2013, the stock market was forecast to have to witness the withdrawals of foreign investors, but in fact, the total investment capital from foreign investors still increased 54 percent in 2013 and the value of their investment portfolio increased by $3.8 billion from the end of 2012. The number of transaction accounts opened for stock players reached 1.27 million, of which, the number of transaction accounts for foreign players increased 55 percent on year.
Also in 2013, the stock market’s capital mobilisation role continued to be affirmed when the total capital mobilisation value via the stock market continued to increase, reaching 179 trillion dong, rising 13 percent on year, of which, the capital mobilisation from shares and equitisations reached 17.5 trillion dong, up 5 percent on year.
The capital mobilisation scale via individual issuances also surged sharply, reaching more than 24 trillion dong, five folds higher than that of 2012. The proceeds via G-bonds reached 162 trillion dong, a year-on-year increase of 14 percent.
For the group of securities companies and fund management companies, 2013 continued to be a rough year and a drastic year for the purification. The number of loss making securities brokers in 2013 was equal to 63 percent (58 out of 94 securities companies posted accumulated losses with a total loss of 5.267 trillion dong), lower than the ratio of 70 percent announced in 2012. The number of loss making fund management companies was lower.
Till the end of the third quarter of 2013, as many as 41 of 47 fund management companies still remained operations, of which, only 22 firms gained profits, six firms were dealt with many solutions and withdrew from the market, including one firm being dissolved, two others being suspended operations to make self-restructuring, one company being forced to stop operation and two others being under special scrutiny due to failing to maintain the capital adequacy ratio as prescribed.
In 2013, the SSC licensed to establish one fund management company owned by an insurance firm and is now considering licensing the establishment for two more fund management companies also owned by insurers.
Regarding the operations of listed companies, in general, these listed firms still faced many difficulties but there were more satisfactory signals in comparison with 2012. In the first nine months of this year, the total revenues of listed firms increased by 17 trillion dong (2.9 percent) from last year, total after tax profit surged 19.1 percent, financial costs declined 12 percent and the return on equity (ROE) soared 8.5 percent. However, the number of listed companies suffering from accumulated losses still accounted for 20 percent, equalling to that of 2012.
This indicated profit making firms continued to gain satisfactory business performance while loss-making firms continued to face higher losses. If comparing to unlisted companies, listed firms still had higher profit capacity.