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Posts Tagged ‘Investors’

Investors anxious about stock market manipulation

In Uncategorized on December 21, 2010 at 9:36 am

Many shares on the stock market are being manipulating but the market watchdog fails to stop the issue, brokers said.

(Photo:Minh Tri)

The construction firm Song Da 9.06 (S96)’s share price surged to VND40,000 this month from the low level of VND15,000 last August, triggering questions about whether the price are being manipulated.


“Some listed firms’ board of directors and big shareholders manipulated their share prices by announcing their firm’s profitable business plans after buying back their shares strongly. And then they took big bucks by selling shares, which were boosted by the information,” said brokers.


Those key shareholders will use the profit from selling shares to buy back more shares in an attempt to ensure their main stakes in the firms, brokers said.


“Therefore, some listed firms focused on issuing additional shares, which will help them to raise their capital strongly,” said a broker in Ho Chi Minh City, who asked to be unnamed.


Last year, the construction company Sudico (SJS) clang on the price of VND60,000 in May before jumping up to VND210,000 five months later.


During the time SJS increasing, there was a rumor on paying dividends by additional shares on the stock market, which then came true as SJS’s share price surged to VND218,000.


PetroVietnam – Nghe An Construction Joint Stock Company (PVA) is among biggest gainers on the stock market this year.


The construction firm’s shareholders made big profits as the share price surged to VND120,000 from VND30,000 in only three months starting from February. Brokers said the share price was manipulated by many investors, who even posted their achievements on some websites.


Investors were anxious on information that Nguyen Thi Kim Phuong, a big shareholder of Cement Materials and Transportation Joint Stock Company (VTV), dumped her entire holding of 557,800 shares.


The State Securities Commission then fined Phuong and two other men VND370 million (US$18,500) for manipulating the share price. However, analysts said the fine was nothing compared with the profit they took from the affair.


Many investors suspected that brokerages, which those people opened trading accounts at, was also involved in the scam.


Similarly the transportation firm Ha Tien (HTV) rose to VND46,000 in September from VND16,000 in June before slumping nearly 75 percent to VND15,400 on December 20.


Some brokers said the slump came after market manipulators failed to boost the share price, while others said manipulators sold the share strongly to take profits from previous surges.


Le Van Dung, chairman and general director of the drug marker Vien Dong (DVD) listed on the Ho Chi Minh stock market was arrested for manipulating share prices last month.


The HCMC-based pharmacy maker earlier was fined VND50 million (US$2,500) for not buying shareholdings in Ha Tay Pharmaceutical JSC (DHT) as it registered to the commission.

Source: SGGP

HCMC to force investors to construct educational institutions

In Uncategorized on December 16, 2010 at 9:37 am

Hua Ngoc Thuan, vice chairperson of HCMC People’s Committee (Photo: SGGP)

The People’s Committee will force investors to build educational, healthcare, and entertainment facilities in a plan for new residential blocks, said Hua Ngoc Thuan, vice chairperson of the Ho Chi Minh City government.


After several cases of children of workers being mistreated, governments have paid more attention to the construction of pre-schools in all industrial parks and zones, even those districts without educational institutions.


Mr. Thuan told Sai Gon Giai Phong journalist that the city has ordered the construction of 15 public pre-schools educational facilities for children.


In addition, HCMC is the first city in the country to implement special policies for teachers with regard to pre-schools.


Mr. Thuan said that however due to our large population, the city cannot meet the demands of any more facilities.


In addition, businesses from the industrial parks in the city, which employ many female workers, must also help the government build more schools for children.


When planning and constructing industrial parks, the city have always ensured that educational and medical facilities are also built.  However, local governments have not always been enforcing these practices, and many enterprises have not followed building requirements.

Kids are learning English at a pre-school in district 4, HCMC (Photo: SGGP)

Mr. Thuan said in article 116 of the Labor law, it states that all employers must build pre-schools or least give financial assistance to female workers that have children in their companies.


After a tour of some of industrial parks and processing zones in the city, Mr. Thuan directed the Department of Education and Training and the Management Board of these industrial parks and processing zones in the city to construct more pre-schools and places where trees can be planted in the parks.


According to Mr. Thuan, investment in education should not be just for profit only, but a way of helping its female employees.


The city will give support to the construction of these facilities in the attempt to reduce pressure on new populated residential areas, where there is a serious shortage of pre-schools.


He hopes that all investors and parents contribute, with the government, in the construction of high quality suitable schools.

Source: SGGP

Investors trapped with market reports, stock experts say

In Uncategorized on November 27, 2010 at 11:20 am

Many securities companies and institutional investors were trying to trap investors with their inaccurate analysis and unreliable recommendations, experts say.

Investors watch share prices at the Ho Chi Minh Securities Corporation (Photo: Minh Tri)


 


The Ho Chi Minh City Stock Exchange’s VNIndex may climb as high as 700 “at some point during this year,” and return within two years to the 1,000 level that it last touched in 2007, Kevin Snowball, chief executive of PXP, said in an interview in July.


 


But financial experts said the fund’s analysis was unreliable as the gauge of 270 companies and five mutual funds listed on Vietnam’s biggest stock market remained gloomy, closing at 439.85 points on Thursday.


 


PXP Vietnam Emerging Equity Fund Ltd. is among the big sellers this month. According to the Ho Chi Minh City Stock Exchange’s website last week, the fund failed to sell its shareholding in Southern Seed Corporation (SSC), Binh Thanh Import Export Production and Trade Joint Stock Company (GIL) and Transforwarding Warehousing Joint Stock Corporation (TMS) because of plunging share prices.


 


VN Direct Securities Ltd. last week warned in its report that the market was experiencing “a short-term panicky time” due to increasing interest rates and pressures on repaying loans against shares. Therefore some brokers and investors will sell shares strongly, the Hanoi-based broker said.  


 


“There is no way to know which amounts of money flowing on the market are individual investments or loans against shares. So how could VN Direct be sure that the market is under pressure on repaying loans against shares?” a stock market analyst, who wants to be unnamed, said.


 


He also said securities firms shouldn’t release incorrect analysis, which could hit the market’s sentiment.  


 


Some big shareholders in listed companies announced on the Ho Chi Minh City Stock Exchange that they would buy back shares as share price is pretty low, according to the exchange’s website.


 


But financial experts said some listed companies’ directors tried to restore investors’ confidence by negotiating with big shareholders, buying back shares from to sell shares at low prices and then sell out when the market recovers.


 


Investor confidence was also anxious by market analysis of brokers, which are run by listed companies.


 


Petro Vietnam Securities Incorporation (PSI) early last week recommended investors to buy PFL shares of the PetroVietnam Finance Land JSC, which was predicted to increase to VND18,559 per share. The construction firm, listed on the Hanoi Stock Exchange, remained unchanged at VND12,000 on Thursday.


 


Many investors however didn’t buy the broker’s recommendation as they were afraid it was trying to help PFL shareholders to sell out in the recent slumping market. “Both PSI and PFL are subsidies of the gasoline maker Petro Vietnam, which sold its holdings in listed subsidies recently. So I think there will be a strong selling of PFL shares soon,” said an individual investor in Ho Chi Minh city.   


 


A director of a HCMC-based broker disclosed many securities firms tended to release optimistic market reports in an attempt to keep their clients.  

Source: SGGP

Stocks nosedive as investors lose confidence

In Uncategorized on November 15, 2010 at 8:54 am

Vietnam remains an attraction of foreign investors

In Uncategorized on November 13, 2010 at 1:59 pm

Seminar helps Japanese investors in Vietnam

In Uncategorized on November 12, 2010 at 1:59 pm

Quang Ninh seeks foreign investors

In Uncategorized on November 2, 2010 at 1:43 pm

HCMC: hi-tech industry popular with investors

In Uncategorized on October 19, 2010 at 8:10 pm




HCMC: hi-tech industry popular with investors


QĐND – Tuesday, October 19, 2010, 22:15 (GMT+7)

Many world leading hi-tech groups such as Intel from the US , Nidec from Japan and German based multi-national Bosch are increasing the scale of their investment in Ho Chi Minh City , an indication of how attractive the hi-tech industry has become to investors.


Intel Vietnam said it would officially inaugurate the first phase of its largest global micro-chip plant, with an investment capital of 1 billion USD, at the Ho Chi Minh City Hi-tech Zone later this month.


The first batch of Intel chips worth 120 million USD is expected to be exported later this year.


Also in October, Bosch Vietnam will have its software research and production centre in Ho Chi Minh City up and running, the company’s second major production facility in the Asia-Pacific region.


According to Bosch Vietnam ’s Managing Director Vo Quang Hue, by the end of this year, the company will have begun the first phase of a 24 million USD auto-parts factory in Long Thanh district, Dong Nai. It also plans to inject an additional 30 million VND to finish the factory by 2015.


Vietnam is now the only Southeast Asian market where Bosch are involved in all three stages, research, production and sales.


Despite operating four projects in HCM City , with a combined investment of nearly 500 million USD, Nidec President Nagomori Shigennobu still says his company will continue with its investment, research and development activities in the HCM City Hi-tech Zone, as well as call on its Japanese partners to invest more in this field.


According to the General Secretary of the Vietnam Electronics Businesses Association Tran Quang Hung, the presence of foreign groups in the hi-tech industry creates opportunities for Vietnamese workers to learn and improve their skills and gradually expand the number of subsidiaries producing components for overseas companies in the next 5-10 years.


Many small and medium sized Vietnamese companies investing in the hi-tech industry could also become partners of foreign groups to manufacture spare parts and help to improve the country’s competitiveness in this sector, he added.


Vietnam has several advantages over other regional countries, such as cheap labour costs and a convenient location for transporting goods to other markets in the Asia-Pacific region, said Hue, adding that in order to develop its hi-tech industry, the country should define itself as a destination for large manufacturers.


Source: VNA


Source: QDND

Stocks slump as investors sell heavily

In Uncategorized on October 14, 2010 at 6:30 pm

Movements of VN-Index on October 4. (Photo: vietstock.vn)The VN-Index, a measure of 261 companies and five mutual funds listed on the Ho Chi Minh Stock Exchange, tumbled on October 4 as investors dumped shares on speculation that stocks would decline further.

The benchmark slashed 1.3 percent, the highest level since September 23, or 5.88 points, to close at 455.83 points.


Liquidity on the city bourse improved by 20 percent over the average level of last week as more than 50 million shares changed hands at VND1.22 trillion.


On the index, only 18 stocks advanced, 219 dropped, while 29 treaded water.


Ocean Group Joint Stock Company (OGC) was the most active share by volume with 2.07 million shares changing hands.


It was followed by Saigon Thuong Tin Commercial Bank or Sacombank (STB) with 1.424 million shares.


Investment and Trading of Real Estate Joint stock Company (ITC) chased after with 1.42 million shares.


Dream House Investment Corporation (DRH) dived 14.29 percent to VND13,200. The company will issue 5.01 million shares. Of which, 749,500 shares are bonus shares, and the same amount is to pay dividends for its current shareholders at a ratio of 100:5.


The company will sell 1,798,800 shares to its current shareholders at a ratio of 100:12, and 112,200 shares to its employees at a price of VND10,000 per share. It will also sell 1.6 million shares to major investors at a price not less than VND16,000 per shares.


The company is expected to collect VND44.71 billion after the sale.


Other losers included DESCON Construction Corporation (DCC), Tay Bac Minerals Investment Joint Stock Company (KTB), and Sai Gon Telecommunication & Technologies Corporation (SGT).


Among a few gainers, Dinh Vu Port Investment & Development Joint Stock Company (DVP) emerged 3.94 percent to VND36,900.


Beton 6 Corporation (BT6) advanced the first time in three straight trading sessions, adding up 2.9 percent to VND71,000.


The northern bourse also opened week in red as the Hanoi’s HNX-Index contracted 4.89 points, or 3.89 percent, to 120.92 points. Around 44 million shares were traded at a value of VND931 billion, the most impressive trading result in the past ten sessions.


The UPCoM-Index sliced 0.28 points to 45.26 points as of 11:10 am local time. A total of 250,000 shares changed hands at VND4.2 billion.

Source: SGGP

Japanese investors stay put in Vietnam

In Uncategorized on August 4, 2010 at 3:20 pm




Japanese investors stay put in Vietnam


QĐND – Wednesday, August 04, 2010, 20:36 (GMT+7)

Vietnam continues to be an attractive destination for Japanese investors, said the third Vietnam-Japan economic seminar in Tokyo on August 3.


The seminar entitled “Japan’s overseas investment tendencies – Vietnam’s case” was attended by more than 70 Japanese economic experts and business people as well as visiting Vietnamese Deputy Minister of Planning and Investment Dang Huy Dong.


Addressing the seminar, senior economic expert Saori Sugeno from the Daiwa Institute of Research (DIR) of Japan said that Vietnam remains the second attractive destination for Asian investors, following China, and is becoming an important production workshop for the global supply system.


Investors have chosen Vietnam to reduce the risks of investing too much in China, said Sugeno, adding that they are also encouraged by increasing consumer spending and the recent launch of a series of large-scaled infrastructure development projects.


He, however, suggested the Vietnamese Government soon build a legal corridor for the public-private partnership model to attract more private capital for the State’s infrastructure projects.


The Vietnamese Government should further improve the investment environment as well as develop the capital market to attract indirect foreign investment and infrastructure investment funds, he added.


Deputy Director of the Asian and Ocean Division under the Japan External Trade Organisation (JETRO)’s Overseas Research Development Bureau Yuichi Bamba laid stress on socio-political stability, a large market with a high growth potential and an abundant and cheap workforce as Vietnam’s major advantages.


He quoted the results of JETRO’s recent studies which showed labour cost in Vietnam is the lowest compared with other ASEAN nations and the majority of Japanese businesses operating in Vietnam in 2010 are optimistic about business prospect in Vietnam after the global economic crisis.


Source: VNA


Source: QDND