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
Business & Investment Opportunities
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