Firms falter in plans to issue shares

Listed companies on the two national stock exchanges have completed only 48 per cent of additional share issues targeted for this year, although 81 per cent of planned stock splits have been carried out, according to a report from Saigon Securities Inc (SSI).

As of August 31, companies had issued over a billion shares, or 81 per cent of a 1.28 billion to be issued this year through stock splits, which include offering bonus shares to existing shareholders and paying dividends in the form of shares.

"If existing shareholders refuse to buy additional shares, they face a risk of dilution as share prices will be adjusted downward in proportion to the value of the issue," SSI director of analysis Hoang Viet Phuong wrote in a statement.

Listed companies (Not including banks) have also targeted to raise nearly VND19.4 trillion (US$993.7 million) this year through the issue of additional shares.They have so far raised over VND9.3 trillion ($476.9 million) on the two national stock exchanges, or 48 per cent of the goal.

Firms have also succeeded in issuing VND1.93 trillion ($99 million) worth of convertible bonds, or 25 per cent of the targeted VND7.7 trillion ($395.5 million) for the year.

These figures do not include planned initial public offerings (IPOs) on the over-the-counter market. PetroVietnam Gas, for instance, expects to raise $150 million in its IPO next month.

Seven listed commercial banks, meanwhile, have projected to raise VND17 trillion ($871.8 million) in the sale of additional shares and VND1.5 trillion ($76.9 million) in the sale of convertible bonds.

The total capital which companies hope to raise this year accounts for just 4.4 per cent of total market capitalisation on the two stock exchanges and was expected to be absorbed in part by indirect foreign investment inflows which have already totalled $1.8 billion in the first half this year.

Phuong, however, doubted whether remaining targets could be met before the end of the year under the current circumstances on the market. Stockholders were also voicing increased concerns over how effectively companies would utilise amounts raised and the impact of aggressive share issues on corporate growth and the national economy overall, he said.

CII: Resolution of the extraordinary shareholders’ meeting

Ho Chi Minh City Infrastructure Investment Joint Stock Company announced the resolution of the Extraordinary Shareholders’ Meeting:

* Article 1: The Meeting approved to cancel a share issuance to increase charter capital to VND1,003 billion. The Meeting also unanimously agreed to increase CII’s charter capital from VND753 billion to VND900 billion, instead of VND1,003 billion.

* Article 2: CII will privately issue convertible bonds (Or convertible loan) to Ho Chi Minh City Finance and Investment State-owned Company (HFIC) with a term of 5 years. Total issue value will be VND71,079,000,000. Bond interest is not more than 13%/year (In VND).

Authorizing the Board of Directors to implement legal procedures, negotiate and sign an investment contract with HFIC, in which: There are unchanged basic contents: (1) Price of converted stock is not lower than VND43,500/share; (2) Interest of convert bonds is not more than VND13%/year (In VND).

* Article 3: CII will privately issue convertible bonds (Or convertible loans) to foreign partner(S) with a term of 5 years. Total issue value is from US$20 million to US$25 million. Bond interest is not more than 4%/year (In US$ exchange rate).

Authorizing the Board of Directors to implement legal procedures, negotiate and sign investment contracts with foreign partner(S), in which: There are unchanged basic contents: (1) Price of converted stock is not lower than VND43,500/share; (2) Interest of convert bonds is not more than VND4%/year (In US$ exchange rate).

* Article 4: This resolution takes effect from August 18, 2010.

ITA: Difference of figures in the financial statement Q2 and H1/2010

Tan Tao Investment Industry Corporation (HoSE: ITA) has explained difference of figures in the financial statement of Q2/2010 and the first 6 months 2010 as follows:

* After-tax profit in the financial statement of Q2/2010: VND155.623 billion

* After-tax profit in the examined financial statement of the first 6 months 2010: VND460.356 billion.

Reason:

In the first 6 months 2010, ITACO recorded dividend from its subsidiaries as the Tan Tao Office & Plant Service and Trading Co., Ltd. (100% capital of ITACO) worth VND70 billion and the Tan Duc Investment JSC (94% capital of ITACO) worth VND250 billion. Because these were the internal earnings, they were deducted in the integrated financial statement. Thus, the amount was recorded in the item “undistributed profit” in the financial statement of ITACO. However, when the Ernst & Young audited the statement, it transferred the amount to the item “financial income” in the report of the business result of ITACO. This made difference of after-tax profit in the financial statement done by ITACO and Ernst & Young.

World stock more good news

Market optimistic about China's industrial output, forecast economic growth in Europe and beyond all forecasts new regulations for the banking sector.
The positive report on the economic recovery momentum worlds and psychological improvement in the U.S. market in recent times has eased concerns about a recession compound. Start a new week on Wall Street in the vibrant atmosphere, when the S & P early on ranges exceeding 200 days on average for the first time since August. Purchasing power pushed the index up nearly the highest end of the day.
Closed session is successful, the Dow Jones Industrial Index increased 81.36 points, corresponding to 0.8%, to 10544.13 points. Thermometer pen out Standard & Poor 500 1.1%, core at 1121.9 points. S & P towards 1130 resistance point threshold is set back in May. Meanwhile, the Nasdaq Composite index sublimation technology 1.9%, to close at 2285.71 points.
On the shore across the Atlantic, European stocks peak conquered four months due to the departure for the band bank stocks. Index thermometer 18 DJ Stoxx 600 area increased 0.7% to 266.45 points. This session, all electronic spreadsheet markets closed in green color. English and French stock pens turn out 1.2% and 1.1%. Thermometer record the German DAX 30 added 0.8%.
Committee of European Banking Supervision (BCBS) represents 27 member central banks, decisions doubles capital requirements for banks in the block. With the aim to prevent a financial crisis can happen in the future, this rule for banks 8 year period to implement the capital increase. Specifically, BCBS requires lenders to meet the charter capital corresponding to 7% of total assets on the books.
Asian equities turned in the strongest four weeks. Market transactions in a state of high excitement after a series of positive economic data from the U.S. and China continued to be announced. 23 Index MSCI regional thermometer jump 1.4% to 123.55 points - its highest since 4 / 5. Statistics from the bottom level is set 25 / 8, this index has recovered by 6.6%.
In Tokyo, the Nikkei 225 barometer reconquest 9300 point mark, recording a 0.9% and core at 9321.82 points. The same increase was 0.9%, South Korea stock peak 27 months. Blue cover on the board. Markets in Taiwan and India respectively, plus 2.6% and 2.2%. Markets from Hong Kong, Singapore and Australia to break the pen in between 1.9% to 1.2%. Thermometer China's Shanghai Composite up 0.9%.
Changes in the same way with the financial markets, world oil prices soared to four-week peak. On the NYMEX trading floor goods, the price of black gold delivery in October further term of 74 cents (1%), exceeded 77 dollars and technical, to the core at 77.19 dollars a barrel.
Fluctuations in gold prices also increased slightly in the harbor. Specifically, the term gold price on the board in December Comex slightly inched 0.6 dollars, up 1247.1 dollars an ounce.
On the New York foreign exchange market, the euro price increases with the amplitude of the strongest in 10 weeks against the dollar. Investors information cheerfully before the Committee supervising European banks extend up capital for banks, as well as public health Eurozone financial sector is still in control. Rate swap between

Resources purchased securities decline

Reduce the 2nd consecutive session took 450 of the VN-Index milestone, but power demand in the stock price fell sharply from an average week, although today is the first continuous order matching last longer than usual 30 minutes.
Not a reversal signal, the index floor HCMC relief after 15 minutes of the opening phase (2.41 points) and strong accretion during continuous order matching. By the time closing, the VN-Index close below the 450 mark three points, the Left key session 447.27 points.
Extended time round 2 in order to increase market liquidity, helping investors more trading opportunities with continuous order matching method. However, in the early days of hand to apply the new timetable, only about 80% average last week. Specifically, Ho Chi Minh City recorded 46.3 million of securities transfer, equivalent to 1116 billion.
Middlemen who buy only in moderation and not quite so impatient majority of the proposed price is low, while the seller is not a massive discharge of goods, caused the liquidity setbacks today. Balance sale price floor appears only in a few stocks, mainly the previous code has increased dramatically, now exposed in the pressure discharge.
Most sessions were not reduced, but some stocks are also large capitalization value was 0.1 to 1.2 points and lost than to stand price range (CAN, BVH, MSN, CTG, Vig, HAG, EIB) .
Total stock rose last session took place, exceeding 40 in the final code, including the blue-chip FPT, DPM, HPG, PVD to mild 0.1 to 0.7 points. But the ceiling fell as shares of small and medium stocks: HTV, LAF, RDP, TDC, VFG.
ITC, REE, SSI, VHG volume market leader, offers over a million shares. ITC, REE, SSI also blocks foreign middlemen in from several dozen to a hundred thousand shares, alongside dozens of other blue-chip stocks by foreign investors buying up this morning.
HNX-Index ended the week at 128.22 points, are subtracted 2.93 points (2.23%). Total trading volume of 37.5 million overall market securities, each application 895.9 billion, down 30% from the previous session.
Stock market trading public company trading volume reached 0.16 million shares, valued at 2.1 billion, as of 11h15. UPCoM Index decreased 0.36 points, down 47.1 points.