VietNamNet Bridge - The securities investors in 2016 who bought shares with small capitalization value were the unluckiest investors in 2016. Those who held Truong Thanh shares ended up with nothing.

2016 was a prosperous year for securities investors with the VN Index keeping its stable upward trend. Those, who injected money into stocks, could expect the profit 2.5 times higher than bank deposits. 

Analysts commented that a high proportion of securities investors could not make profits or even lost big money when disbursing money for shares with small capitalization value. Except in some special cases, most of the shares saw prices decreasing. 

Only companies which gained impressive business results such as CTD, RAL, TV2, VCB, SLS, BMP, NNC and PTB saw share prices increasing by 50 percent by the end of 2016 compared with 2015. 

Meanwhile, shares with low market prices and modest profits continued downhill.

An experienced broker said the unluckiest investors were those who held Truong Thanh Furniture Corporation (TTF – HOSE). Audited finance reports discovered problems for the the corporation, including unpaid VND1.2 trillion.

The securities investors in 2016 who bought shares with small capitalization value were the unluckiest investors in 2016. Those who held Truong Thanh shares ended up with nothing.

Three Deputy CEOs and two members of the Board of Management at Truong Thanh Furniture including the company’s founder and his son, were dismissed from their duties under a resolution from the Board on November 28.

Vietnam Economic Times reported that EY Vietnam, appointed to review TTF’s interim consolidated financial statements since December 31, 2015, was unable to confirm TTF’s inventory as at December 31 and inspections have also not provided them with appropriate evidence to determine the amount of stock on hand.

TTF’s cumulative losses as at June 30 increased by a further VND130 billion ($5.8 million) to VND1.2 trillion ($53.8 million) due to VND127 billion ($5.7 million) in stock found to be missing.

The broker commented that TTF was a bitter lesson for investors in 2016 similar to shipping firms’ shares some years before.

While TTF made a lot of investors penniless, Hoang Anh Gia Lai shares (HAG – HOSE) also saw stock assets of many investors shrink. When HAG price fell to below VND10,000 per share, investors decided to collect HAG as they believed the rubber price would go up in the world market soon. 

When the prices continued to fall to VND8,000 per share, many investors accepted to sell HAG to stop losses. And they made a correct decision, as the HAG later continued falling to VND4,930 per share before going up again to VND7,000.

Pouring money into bank shares, except for VCBm, was not a wise decision by securities investors.

Regarding the market prices, Sabeco, the nation’s leading brewer, now has the highest market price, at over VND200,000 per share.