Eighty-seven out of over 100 securities companies have posted their 2010business results, and 24 of these incurred losses last year whichtotalled a combined 574 billion VND (27.5 million USD).
According to data compiled by financial website cafef.vn, Kim LongSecurities Co (KLS) led the losers with a whopping loss of almost 173billion VND (8.3 million USD), followed by Bao Viet Securities Co (BVS)with a loss of nearly 93 billion VND (4.4 million USD). Ten firmsposted losses of over 10 billion VND.
Nine of these losingfirms have not been profitable for three years in a row, including KIS,Thanh Cong, Nam An, Navibank, Mien Nam, Hanoi, VinaSecurities, Nam Vietand Tam Nhin. The latter two have incurred losses for four consecutiveyears.
Even more astonishingly, 35 major securities firms,including some that posted profits in the most recent years, have hadcumulative losses over the last three years. Companies with the biggestthree-year losses included such major brokerages as BVS, with losses of214 billion VND (10.2 million USD), and KLS, with losses of 169 billionVND (8.1 million USD).
In light of these heavy cumulativelosses, 14 securities companies had equity capital less than theircharter capital by the end of last year. VinaSecurities, with chartercapital of 185 billion VND (8.8 million USD), had equity of just 59billion VND (2.8 million USD) at the end of 2010.
Analystsattributed the losses to a prolonged declining market. Many investorshave halted or reduced trading, sharply cutting securities companies'earnings from brokerage services. Many securities companies also tradein stocks themselves and have suffered losses as the markets havecontinued to plunge.
Ministry of Finance Circular No 226took effect this month and market insiders viewed this as a step forwardin monitoring the operations of securities firms. Under the circular, asecurities firm, to be considered healthy, must satisfy a ratio oftotal usable capital to total risks of no less than 180 percent.
"This regulation helps securities companies evaluate objectivelycompanies' financial health and adjust their operations in a safer andmore effective direction," said Thang Long Securities Co deputy directorMac Quang Huy./.
According to data compiled by financial website cafef.vn, Kim LongSecurities Co (KLS) led the losers with a whopping loss of almost 173billion VND (8.3 million USD), followed by Bao Viet Securities Co (BVS)with a loss of nearly 93 billion VND (4.4 million USD). Ten firmsposted losses of over 10 billion VND.
Nine of these losingfirms have not been profitable for three years in a row, including KIS,Thanh Cong, Nam An, Navibank, Mien Nam, Hanoi, VinaSecurities, Nam Vietand Tam Nhin. The latter two have incurred losses for four consecutiveyears.
Even more astonishingly, 35 major securities firms,including some that posted profits in the most recent years, have hadcumulative losses over the last three years. Companies with the biggestthree-year losses included such major brokerages as BVS, with losses of214 billion VND (10.2 million USD), and KLS, with losses of 169 billionVND (8.1 million USD).
In light of these heavy cumulativelosses, 14 securities companies had equity capital less than theircharter capital by the end of last year. VinaSecurities, with chartercapital of 185 billion VND (8.8 million USD), had equity of just 59billion VND (2.8 million USD) at the end of 2010.
Analystsattributed the losses to a prolonged declining market. Many investorshave halted or reduced trading, sharply cutting securities companies'earnings from brokerage services. Many securities companies also tradein stocks themselves and have suffered losses as the markets havecontinued to plunge.
Ministry of Finance Circular No 226took effect this month and market insiders viewed this as a step forwardin monitoring the operations of securities firms. Under the circular, asecurities firm, to be considered healthy, must satisfy a ratio oftotal usable capital to total risks of no less than 180 percent.
"This regulation helps securities companies evaluate objectivelycompanies' financial health and adjust their operations in a safer andmore effective direction," said Thang Long Securities Co deputy directorMac Quang Huy./.
