Vietnam Stock Market News
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- HSBC buys stake in Vietnam insurer (Bao Viet) for $255 mln
HSBC Holdings Plc , Europe's biggest bank, is paying about $255 million (125 million pounds) for 10 percent of Bao Viet to become the sole foreign investor in Vietnam's largest insurer, the companies said on Thursday.The deal, which is the biggest ever insurance investment in Vietnam, comes after the British bank vowed to expand more aggressively in Asia and in insurance.
Under the terms of the deal HSBC will hold the stake for at least five years, during which time it has the option to buy another 8 percent from the Ministry of Finance and has additional pre-emptive rights to lift its stake to 25 percent and the prevailing foreign ownership limit thereafter.
Vietnam's insurance industry has grown rapidly in recent years, reflecting the country's robust growth of more than 8 percent in 2005 and 2006.
Bao Viet, formally known as the Vietnam Insurance Corporation, is also selling a 3.56 percent stake to state-run shipbuilder Vinashin for "about $90 million", the insurer's chairman, Le Quang Binh, said.
Bao Viet's share price in the two deals averaged about 71,900 dong ($4.40), company officials said. Dealers said that shares in the unlisted group are being traded at about 65,000 dong ($4) each on the unofficial markets.HSBC will provide technical assistance to the Vietnamese company and "will elevate Bao Viet to a global level," Binh told a signing ceremony in Hanoi.
Clive Bannister, head of HSBC Insurance, said the deal was attractive due to the "extremely low" level of insurance penetration in Vietnam, its large population, and a market leading partner.
"We get in at the ground floor level an opportunity with a superb partner ... it gives us national coverage on day one," Bannister told Reuters.
He expected the bank to increase its stake to the allowed limit. "In our opinion it is sensible to have as much ownership as the regulations will allow," he said, adding he expected there to be a progressive liberalisation allowing more foreign ownership.
HSBC is aiming to double its insurance unit's share of group profits within five years, which should see it become one of the top 10 global insurers. The unit made $1.6 billion in the first half of this year.
Bao Viet's new registered capital would be 5.73 trillion dong ($354 million), Binh said.
"Bao Viet should have plans to list on the stock market in Vietnam and markets overseas as well," Finance Minister Vu Van Ninh said in a speech at the ceremony.
The Hanoi-based insurance group has said it plans to list on the Hanoi stock exchange by 2009.
It forecast net profit this year would climb 64 percent to 524 billion dong ($32 million) as it expands into banking, fund management and real estate.
Bao Viet had said it would offer 18 percent of its shares to foreign investors. The state retains a 77.54 percent stake.
Bao Viet has 126 branches and 400 sub-branches, 5,000 employees and 40,000 agents, and is the market leader in both life and general insurance in terms of premiums, HSBC said.
Revenue in the January-July period was more than 4.2 trillion dong -- or 58 percent of its 2007 target.
Non-life insurance premiums in the period rose 13 percent from the previous year to 1.26 trillion dong, while life insurance premiums firmed 5 percent to 1.87 trillion dong.
Credit Suisse advised on the deal between HSBC and Bao Viet.
Thu, 13 Sep 2007 16:30:00 +0000 - Bao Viet Insurance to sell shares to HSBC Insurance and Vinashin
HSBC Insurance buys stake in Bao Viet Insurance
The Viet Nam Insurance Corporation (Bao Viet) signed a deal to sell its shares to HSBC Insurance and the Viet Nam National Shipbuilding Industry (Vinashin) group on Sept. 13.
Under the contract, HSBC Insurance will hold a 10 percent stake valued at more than 4.12 billion VND in Bao Viet and becomes the corporation’s sole foreign strategic partner.
As a Bao Viet’s partner, HSBC Insurance will help the corporation become one of the world’s strong businesses, General Director Clive Bannister of HSBC Insurance said at the signing ceremony.
Bao Viet will also transfer 3.56 percent of its shares worth more than 1.46 billion VND to Vinashin.
Bao Viet, which is providing non-life insurance, life insurance and financial services, is leading the domestic insurance market in terms of revenues and market share.
Thu, 13 Sep 2007 16:25:00 +0000 - Sacombank Securities Co. (SBS) tops list of large-scale businesses in stock market
Sacombank’s Securities Company (SBS) has been allowed to increase its chartered capital to 1,100 billion VND by the State Securities Committee, announced the body on Sep. 12.
Accordingly, SBS has become the largest securities company in the market. On Sep. 11, SBS also upgraded its transaction agency in
Under its plan, SBS will open additional representative offices in
At present, SBS has attracted 8,500 accounts, which bring about transactions worth 100 billion VND each day, accounting for 10% of the market’s shares.
Thu, 13 Sep 2007 16:17:00 +0000 - The Ho Chi Minh City Stock Exchange (HoSE) welcome new members
The Ho Chi Minh City Stock Exchange (HoSE) on Sept. 13 recognised the FPT Securities Joint Stock Company (FPTS) as its 53rd member.
The Ha Noi-based company, with a chartered capital of 200 billion VND, offers services including brokerage, consultation and underwriting.
According to the company General Director Nguyen Diep Tung, FPTS will invest in advanced technology in order to provide its customers with high-quality services.
Thu, 13 Sep 2007 16:08:00 +0000 - An Binh Commercial Bank (ABBank) plans new issuance
An Binh Commercial Bank (ABBank) is set to issue over 114.7 million shares to increase its chartered capital to VND2.3 trillion from the current VND1.13 trillion.
The share issue date remains unknown.
As planned, ABBank, will sell nearly 73.6 million shares to existing shareholders at the par value of VND10,000 while 35.9 million shares will go to strategic partners at negotiated prices.
The lender’s staff can register to buy into 5.2 million shares at VND17,000 each.
Thu, 13 Sep 2007 16:02:00 +0000 - Sep 13, VN-Index increased 0.12 points, HaSTC-Index increased 0.13 points
The Ho Chi Minh City bourse and its Ha Noi-based counterpart both recorded minimal gains by the end of the September 13 trading morning session.
The VN-Index, which measures the value of the Ho Chi Minh Stock Exchange (HoSE), increased 0.12 points to finish at 921.31 points.
By closing, 8.3 million shares, worth 721 billion VND, changed hands. 28 shares rallied for gains, 70 declined and 18 showed no change.
Strong rises were seen in the traded prices of Lugia Mechanical Electric (LGC), Hoa An Joint Stock Company (DHA), Pha Lai Thermo Power (PPC), and Viet Lien Joint Stock Company (UNI).
The to biggest losers on the day were blue-chips Binh Dinh Minerals (BMC), which had 18,000 VND slashed from its stock price, Hau Giang Pharmaceutical (DHG), Domesco Medical Import-Export JSC (DMC), Imexpharm Pharmaceutical JSC (IMP) and Kinh Do Corp. (KDC).
The HaSTC-Index at the Ha Noi Securities Trading Centre also recorded a slight increase of 0.13 points to finish at 259.16 points with more than 5.6 million shares, worth over 265 billion VND, being traded.
Song Da 9.09 (S99), Construction No. 2 (VC2), and Binh Minh Insurance (BMI) were among the biggest gainers of the day.
According to the HoSE, the Viet Nam Diary Products Joint Stock Company (VNM) has announced that the country netted revenues of more than 4.3 trillion VND for the past eight months of the year.
The Ha Tien Transport Joint Stock Company (HTV) said it has submitted to the State Securities Commission a plan to issue an additional of more than 5.2 million shares to mobilise capital for a number of projects, including a container port and a cement grind plant in southern Vinh Long province and a project to build a 5,000 DWT barge.
Deutsche Bank is currently one of its chief shareholders by holding 580,000 shares or a 12.08 percent stake in the company.
Thu, 13 Sep 2007 11:35:00 +0000 - HSBC Insurance buys stake in Vietnam Insurance Corp (Bao Viet)
HSBC Holding Plc will buy shares in Bao Viet, Vietnam's largest insurance firm, an official of the Vietnamese company said on Thursday."We will sign with HSBC Insurance to be our strategic investor", the official, who declined to be identified, said before the two companies sealed a contract on the share purchase.
The official said state-run shipbuilder Vinashin would be a domestic strategic investor in Bao Viet, formally known as the Vietnam Insurance Corporation, but did not say how many shares each firm would buy.
Thu, 13 Sep 2007 11:22:00 +0000 - Three Vietnamese Domestic Banks joined for international integrationOn September 11, the Saigon Thuong Tin Joint-stock Commercial Bank (Sacombank) signed cooperative contracts with the Hanoi Building Joint-stock Commercial Bank (Habubank) and the Military Joint-stock Commercial Bank (MB).
Under the contract, Sacombank with Habubank and MB will cooperate together on capital loans services, supporting foreign currency and gold busniness to meet the demands of customers, and raising mutal bank deposits levels without assets of up to 1,000 billion VND. Also under the contract, the banks will cooperate in training staff, support professional skills such asset management, foreign currency business, and capital business.
The sides agreed cooperative regulations to assist them in seeking business and cooperation opportunities effectively on the basis of mutal profit.
A represetative from Sacombank said: “ Under Vietnam’s commitments to WTO accession, foreign enterprises in every business sector will be treated the same as Vietnamses enterprises from 2010. Furthermore, tax barriers and preferential policies to assist domestic enterprises will be removed. The competitiveness will be fiercer and the finance and banking fields will be under the spotlight. The comprehensive cooperation between Sacombank, Habubank, and MB is a positive sign to promote competitive capability and to be ready to compete with powerful fiancial organizations in the market place when Vietnam’s commitments to the WTO come into effect.”
Previuosly, the Bank for Investment and Development of Vietnam cooperated with the Nam A Joint-stock Commercial Bank for mutual development in the international integration. ( Hanoi Moi News)
Thu, 13 Sep 2007 11:13:00 +0000 - Investors Pin High Hopes on Power StocksStock investors are very hopeful of shares in power companies when the sector’s development potential is very big after the Vietnamese government is now going on to call for investment in power projects, state media said.Pha Lai thermal power plant, or PPC, which is taking the leading position among the listed power firms and biggest one by market capitalization of VND20 trillion and total volume of 326.2 million shares on Hochiminh Securities Exchange, obtained VND704 billion profit in 2006 and VND562.8 billion in first half of 2007. It was now traded at VND60,000.VSH, meanwhile, has been named among Vietnam’s 5 largest trading volume, with total 125 million shares and total market capitalization of VND6.2 trillion.Despite the bear market, VSH shares kept rising recently, VSH shares were traded at VND51,000 on investors’ continued buying as it is preparing to invest in two new Hydropower Plants, Kon Tum and Vinh Son II.The Vietnam stock market now has seven electricity stocks, including four on Ho Chi Minh City bourse and three on Hanoi bourse, with total market capitalization of $2 billion, or 10.8 per cent of that of the whole market, according to Saigon Securities Incorporated’s survey. This is the market’s third largest sector after food production and banking, out of 39 sectors on the market.Currently, on HOSE are Khanh Hoa Power (KHP), Ry Ninh II Hydropower (RHC), Can Don Hydropower (SJD), and Vitaly (VTA), which are also drawing interest from both foreign and domestic players.On the Hanoi bourse, the shares of Thac Ba Hydropower Compnay (TBC) have seen trading volume three times higher in recent three sessions than the previous days.Vietnam is planning to invest about $4 billion a year to develop power generation source and works to meet the country’s growing power demand with annual growth of 15-17 per cent, and the country is warned of facing lacking 4.3 – 10.3 billion kWh of electricity in 2007-2009.The retail electricity price will be raised to VND890/kWh in 2008, up 4.5 per cent from current level. Companies operating in the sector are expected to gain a high and stable development in the future. (Vnbourse, Laborer)
Thu, 13 Sep 2007 11:11:00 +0000 - Royal International Securities become the 55th trading member of HaSTC
The Royal International Securities Joint Stock Company (RIS) has officially become the 55th trading member of the Hanoi Securities Trading Centre.The director of HaSTC signed a decision on September 11 to recognise the company’s trading membership status at HaSTC.
RIS, headquartered at 30 Nguyen Du, Hanoi, received an operational license from the State Securities Commission on July 6, 2007.
The company has a charter capital of VND 135 billion and is allowed to carry out self securities trading and provide securities brokerage, investment consultancy and depository services.
Thu, 13 Sep 2007 10:55:00 +0000 - Low bank share prices, opportunities for investors
It’s quite a paradox that the profit gained by joint stock banks now is at the highest level while the prices of their shares are at the lowest.
Profit up by 157%
To date, only two banks have listed shares on the bourse, Sacombank (STB), and ACB (ACB), while the 35 other banks still have their shares traded on the OTC market. The two listed banks have announced their financial indexes, which show profit gain and other indices among the highest levels in the region.
Dang Van Thanh, Chairman of Sacombank, said that by the end of August, Sacombank had gained the pre-tax profit of VND900bil ($56.25mil). If the bank can maintain its current growth rate, it will have the profit of VND1,400bil ($87.5mil) this year, an increase of 157% over 2006. Also this year, the bank plans to raise its chartered capital from VND2,089bil ($130.56mil) to VND4,449bil ($278.06mil), up by 112%.
Though the EPS of the bank has improved, STB is still being largely ignored on the market as the number of the bank’s circulating shares has increased, causing the so called ‘dilution effect’. STB was sold at VND70,000/share this time last year, while it is now selling at VND55,000/share only, down by 21.4% in value.
Meanwhile, ACB, which lists on Hanoi’s bourse, is now trading at nearly VND120,000/share, though the deadline for wrapping up the list of investors for convertible bonds is nearing. The price level represents the decrease of 45% from the highest peak of the item’s price.
By the end of August, ACB had gained the profit of VND1,100bil ($68.75mil), an increase of 61% over 2006. If everything goes smoothly, ACB will gain the profit of VND1,600bil ($100mil) this year, an increase of 135% compared to 2006. Though the bank’s profit has increased, the EPS has not seen any improvement since the bank’s chartered capital also increased.
Bank share prices lower than the levels they should be
According to international standards, the PE index in the future of shares is always equal to the profit growth rate.
The PE of STB, according to the HCM City Stock Exchange’s report on September 11, is 30.6. It is expected that by the end of this year, when STB gains the said profit, the EPS will be higher because Sacombank still enjoys the 50% reduction in corporate income tax, and the PE will decrease to 20.4. In principle, if its profit increases by 157%, the PE of STB will be 157, which means that STB will be five times more expensive than currently (VND165,000).
Meanwhile, STB is now selling at VND55,000/share only. Foreign investors may well understand that bank share prices are now dirt cheap, and are trying to keep the bank shares they have.
In theory, if a company could gain the profit growth rate of 50% per annum, the value of its shares would be 7.59% higher than the initial value after five years, and if the profit growth rate was 100%, the value would be 32 times higher after five years. As such, if considering that every year Sacombank’s profit grows by 50%, it should have the profit of VND10.626bil ($664.12mil) by 2012.
Thu, 13 Sep 2007 10:50:00 +0000 - Song Da Industry Trade (STP) and PTS Saigon to offer shares
The State Securities Commission (SSC) on September 11 granted licenses for two more companies to offer shares. Under it, the Song Da Industry Trade Joint Stock Co (STP) with a chartered capital of 15 billion dong will offer two million ordinary shares at 10,000 dong par. Of which, 1,487,400 shares will be sold to the existing shareholders, 75,000 shares will be allocated to the company's employees and the remaining of 437,600 shares will be offered to the investors outside. The distribution duration will be 90 days from receiving the license.
Petrolimex Saigon transportation and Service Joint Stock Co (PTS Saigon) with a charted capital of 12.9 billion dong to offer 710,000 ordinary shares at 10,000 dong par. Of which, 323,000 shares will be auctioned to the public and the remaining of 387,000 shares will be bonus shares to existing shareholders and the company's employees.
Thu, 13 Sep 2007 07:16:00 +0000 - Sai Son Cement Join Stock Co (SCJ) to list over 2.7 million shares on HaSTC
The Hanoi Securities Transaction Centre (HaSTC) recently announced that it approved for Sai Son Cement Join Stock Co to list over 2.7 million SCJ-coded shares via the northern floor on September 19.
The Sai Son Cement Joint Stock Co with a chartered capital of 27.742 billion dong reported 88.352 billion dong in revenue in the first half of the year and paid tax of five billion dong.
The company is well known in such fields as producing and trading cement, clinker, construction materials and assembling civil works.
Thu, 13 Sep 2007 07:13:00 +0000 - Song Da No 10 Joint Stock Co to auction 1.7mil shares
The Hanoi Securities Transaction Centre (HaSTC) recently announced that 1.7 million shares at the face value of 10,000 dong par and the initial price of 59,900 dong per share of Song Da No 10 Joint Stock Co will be officially traded via the northern floor on October 11.
The time to register and deposit is from September 12 to 3 pm October 3.
Now, the Song Da No 10 has a chartered capital of 60 billion dong operating in fields of building underground works and services, building hydropower works and exploiting and processing minerals.
On the northern floor, ending the session on September 11, the SDT coded-shares were traded at the price of 73,200 dong per share and the average traded price of 73,100 dong par.
Thu, 13 Sep 2007 07:08:00 +0000 - Amcorp Group (RCE Capital) to cooperate with Vietnam's Southern Bank
Malaysia’s AmcorpGroup and a southern Vietnam commercial bank aim to work together in Vietnam’s banking and financial sectors.
RCE Capital, a financial affiliate of Amcorp, and the Ho Chi Minh City-based Southern Joint Stock Commercial Bank (Southern Bank) sealed a cooperation deal Tuesday.
Following the deal, the two parties will cooperate in the financial services sectors that are expected to boom in the near future in line with Vietnam’s rapidly-developing economy.
The signing of the agreement was the initial outcome of a meeting in July between Southern Bank and Amcorp under which the local lender sought to cooperate with the Malaysian group in fund management, stocks, insurance and financial services.
At that time, AmcorpGroup representatives showed a particular interest in cooperating with the Southern Bank to establish a financial company in the country.
Amcorp is the largest shareholder of the AHB Group, which is the fifth largest domestic integrated financial services group in Malaysia in terms of assets.
Its subsidiaries and associated companies are principally involved in the provision of financial services, property development, construction, and information technology.
RCE Capital Berhard is listed on the Malaysian Stock Exchange with capital of US$170 million.
The unlisted Southern Bank had 52 branches with assets totaling VND9.4 trillion in value as of January.
Earlier this year, the United Overseas Bank (UOB), Singapore's second biggest bank by market value, acquired a 10 percent stake in the Southern Bank for $30 million in cash.
UOB said in a statement January it would up these holdings to 20 percent by paying an additional S$44 million ($29 million) in cash if the State Bank of Vietnam approves the plan
Thu, 13 Sep 2007 06:35:00 +0000
