Market plummet hits securities companies’ profit in Q4/2018

24-Jan-2019 Intellasia | Hanoi Times | 6:00 AM Print This Post

As of the fourth quarter of 2018, the VN Index fell from 1,021 points to 892, equivalent to a decrease of 12.6 percent.

Vietnamese securities companies saw a slump in their respective profits in the fourth quarter of 2018 compared to the same period of the previous year, mainly due to a massive plunge in local shares, Vietnam Finance reported.

As of the fourth quarter of 2018, the VN Index fell from 1,021 points to 892, equivalent to a contraction of 12.6 percent.

SSI Securities Corporation, the largest broker in the country, posted a decrease of 14.7 percent year-on-year pre-tax profit to VND324 billion (US$13.96 million) in the October December period.

Meanwhile, the second largest broker on the Ho Chi Minh Stock Exchange (HoSE), Ho Chi Minh Securities Company (HSC), saw its pre-tax profit shrink 62 percent year-on-year to merely VND88.8 billion (US$3.82 million) during the period.

Despite leapfrogging SSI to top the brokerage market share in HoSE in the fourth quarter of 2018, Viet Capital Securities Company (VDSC)’s pre-tax profit was also down 28 percent year-on-year to VND160 billion (US$6.89 million).

VNDirect and Saigon Hanoi Securities (SHS) also faced a similar situation with their pre-tax profit reached VND52.9 billion (US$2.27 million) and VND112 billion (US$4.82 million), down 69 percent and 73 percent year-on-year, respectively. Bao Viet Securities Company (BVSC) also posted a decline of 52 percent in pre-tax profit to VND21.8 billion (US$939,329).

MB Securities (MBS) and ACB Securities (ACBS) saw the biggest slump in pre-tax profits in Vietnam’s brokerage market at VND613 million (US$26,413) and VND1.5 billion (US$64,6320), down 87 percent and 98 percent year-on-year, respectively.

On the contrary, FPT Securities (FPTS), VPBank Securities (VPBS) and Techcombank Securities (TCBS) all experienced an increase in pre-tax profit. Particularly TCBS posted a profit of at VND1.53 trillion (US$65.91 million), up 68 percent year-on-year.

SSI remained the largest broker on the HoSE for the whole year, reaching a market share of 18.7 percent, followed by HSC and VCSC with 11.24 percent and 10.95 percent, respectively.

At the close on January 22, the VN Index dropped by 4.50 points or 0.49 percent to settle at 906.55 points.


Category: Stocks, Vietnam

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