VietNamNet Bridge – Shares have become cheaper than ever after continual sharp falls. About 200 shares have always been traded at the prices lower than 5000 dong.
Vietnamese shares have become so dirt cheap since more and more investors have run away from the stock market. Stocks have been put on an even footing with vegetables, i.e. valueless commodities.
About 700 share items have been listed on both the Hanoi and HCM City bourses. If referring to the closing prices of the Hanoi Stock Exchange on October 10, one would see that 135 kinds of shares were sold at below 5000 dong with 11.5 million shares traded, accounting for 40 percent of the total trading volume.
Of these, PVX, DCS and SHS were the ones with the highest transaction values, accounting for nearly 50 percent of the total trading volume of cheap shares.
On the HCM City bourse, 65 kinds of shares had the trading prices at below 5000 dong with 10.5 million shares traded, or ¼ of the total trading volume of the bourse.
Investors believe that the low prices of the shares truly reflect the current situations of the businesses and the current difficulties of the national economy. Therefore, they said it’s now the time for venturous investors, who can earn fat profit if the stock market bounces back later.
Hung, a big investor in Hanoi said he has sold shares in big quantities and he is now looking for new potential kinds of shares. However, he is not sure about his opportunities, because the share prices prove to be unpredictable and they have been fluctuating all the time.
“The share prices have dropped to the deepest low, which means the great opportunity for brave investors. However, this would be a great challenge for them,” he said.
The investor, who said that he saw more losses than gains over the last four years, since the day he decided to join the market, said the stock market now truly reflects the business performance of enterprises.
“It’s very dangerous to keep low-priced shares at this moment, because the companies have been in bad situations which may go bankrupted anytime,” he noted.
Sharing the same view with Hung, Dung, a consultant, also said investors may suffer dead loss if they buy stocks now.
“There has been no sign of the national economy’s recovery, and I don’t think we would see improvements until early 2013. Therefore, one should not expect to see the share prices increasing again,” Dung said.
The low market prices of many kinds of shares can be explained by the enterprises’ finance reports. The Dong Do Maritime Company (DDM), for example, has reported the loss of 11.5 billion dong in the first six months of the year and the accumulative loss of 68.75 billion dong by the end of June. Meanwhile, the company’s stockholder equity is modest, 18.74 billion dong.
The company reportedly has short term debts of up to 337.4 billion dong, while having the short term assets worth 55.64 billion dong only. The firm has summoned an extraordinary shareholders’ meeting to discuss the sale of specialized container ships Dong Du and Dong Mai to get money for debt payment. DDM had the closing price at 1500 dong per share on October 10.
Thai Hoa Group (THV) shares were traded at 1100 dong on October 10 after the news about the big losses incurred by the company was exposed to the public. The company’s accumulative loss has reached 430 billion dong, equal to 75 percent of the chartered capital.
Especially, the group’s accounts payable in the short term have climbed to 1015 billion dong, or six times higher than the stockholder equity.
1 US dollar = 21,000 VND.
Compiled by C. V
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