VietNamNet Bridge – Both investors and listed companies have experienced a very difficult year 2011. The Club of Securities Journalists has announced the 10 most outstanding events of the stock market as follows.

1. The stock market witnesses sad records

On December 15, the HNX Index of the Hanoi bourse dropped to the deepest low in the history to 58.04 points.

The capital mobilized from issuing more shares, auctioning shares in equitization has reached 17.5 trillion dong, equal to 22 percent of that of 2010. Meanwhile, the capital raised from the government bond issuance has reached 73.7 trillion dong, or 2.6 times higher than that of 2010.

71 securities companies have reportedly incurred accumulative losses. The market capitalization value has dropped to 20 percent of GDP.

2. The plan on restructuring stock market kicked off

The State Securities Commission (SSC) on February 24, stated at the conference discussing the implementation of the stock market development task in 2012 that Vietnam will step by step restructure the stock market.

The Ministry of Finance, SSC have been building the plans to restructure important parts of the market, including securities companies, stock communities and two stock exchanges. Of which, the plan on restructuring securities companies has been submitted by the Ministry of Finance to the Prime Minister.

3. Watchdog agency imposes heavier punishment on violators

In 2011, the total punishment on the violators in the fields relating to the stock market reached 9.1 billion dong, which is double that of 2010.

Especially, the watchdog agency decided to sanction the act of manipulating the stock price of AAA shares of up to 1.2 billion dong.

4. Many changes in transaction mechanism

On June 1, 2011, the Ministry of Finance issued the Circular No 74 guiding securities transactions, stipulating five new issues. Vietnam now allows securities investors to buy and sell the same securities at the same trading sessions, open more than one account.

On August 30, 2011, margin trading officially began in accordance with the Decision No 637.

5. Vietnam officially allows setting up open funds

On December 16, 2011, the Ministry of Finance issued the Circular No 183 guiding the establishment and management of open funds.

The new legal document not only sets up a legal framework to pave the way for the launching of new investment projects, but also eases the pressure of withdrawing capital from the existing close funds.

6. KLS failed to give up the games

On March 2, 2011, Kim Long Securities Company KLS announced that it would stop securities trading. The announcement immediately stirred up the public. However, facing the strong opposition from shareholders, KLS then had to give up the plan.

7. Listed shares in danger of becoming “waste paper”

ANZ, the creditor of DVD, filed a petition to the Hanoi People’s Court, requesting to declare bankruptcy of DVD.

The thing has led to the risk that DVD popular shares being held by 1702 investors would become invaluable.

8. The first share which has the market price below 1000 dong

On November 24, VKP share of Tan HOa Plastics Company became the first share which had the market price drop to 600 dong per share. This is the low record low price in the history of the Vietnam’s stock market.

A survey shows that 401 listing shares (57.3 percent) now have the transaction prices at below the face value

9. Government determines to IPO big guys

Despite the current difficulties on the stock market, the government still is determined to push up the equitization process of big enterprises, such as Petrolimex and BIDV.

This shows the strong determination of the government to restructure state owned groups and general corporations.

10. Instruction No 01 and the tightening of credit

On March 1, 2011, the State Bank released the Instruction No 01, requesting commercial banks to reduce the credit proportions to non-production sectors to 20 percent by June 30, 2011, and to 16 percent by December 31, 2012.

The request has led to the deadlock of the capital flow to the stock market

TBKTVN