VN shares put on warning list

VN shares put on warning list

HCM City and Ha Noi stock exchanges this week put shares of many companies on the warning list or under supervision, due to their losses.

On the HCM Stock Exchange (HoSE), SMC Trading Investment was put on the warning list on April 6, as the firm posted an after-tax loss of nearly VND185 billion (US$8.2 million) last year.

The HoSE will also place steel maker Dai Thien Loc Corporation on the warning list on April 7, as the company's financial reports showed it suffered a loss of more than VND63 billion in 2015.

The bank's undistributed profit of 2014 has been adjusted from VND114 billion to minus VND835 billion, and the undistributed profit of 2015 was about minus VND817 billion, according to its audited financial statements.

Vung Tau Construction and Real Estate will also be on the warning list of the HoSE on April 7 with an after-tax loss of more than VND5 billion reported in 2015.

Pomina Steel has also been placed on this list after posting a loss of roughly VND212 billion as of December 31, 2015.

Earlier this week, the Ha Noi Stock Exchange (HNX) put shares of several companies on the warning list after audited financial reports revealed negative figures in their after-tax records.

The companies included tobacco leaves producer Ngan Son, Viet Nam National General Export-Import JSC No 1 and Asia-Pacific Investment, besides travel firm Fiditour, Song Da Infrastructure Construction and Song Da JSC No 7.

Today, the HoSE put shares of some businesses under supervision because of their continuous losses over the last two years.

Among them was Viet Nam Ocean Shipping, which posted after-tax losses at minus VND144 billion in 2014 and some minus VND298 billion in 2015.

The other firm was Chang Yih Ceramic & Porcelain Tiles, which witnessed after-tax losses of more than VND13 billion in 2014 and approximately VND37 billion in 2015.

Shares of marine transport firm Vinaship are also being supervised by the HoSE, after financial reports showed that company's after-tax losses amounted to nearly VND69 billion in 2014 and some VND40 billion in 2015.

Ninh Van Bay Travel Real Estate is now being supervised by the southern exchange, with financial reports revealing negative figures in after-tax profit records. The figures were more than VND84 billion for 2014 and nearly VND128 billion for 2015.

Asked if the situation of these companies may affect investors' psychology and local stock indices, an analyst at brokerage VietinBank Securities said, "No problem. This is a normal situation and investors understand it."

"It has been months since the companies suffered losses, and investors are aware that any improvement will depend on not only the companies' actions but also macro-economic conditions," the analyst, who wished to remain anonymous, said.

"Personally I think the authorities revealing the names of the warned and supervised firms so soon at this time of the year is a good move. It shows that standards of the domestic stock market are enhanced, and it helps investors make better choices in their investments," he said.

The HoSE and HNX stipulate that shares of a company will be put on the warning list if audited financial reports show that the firm suffers after-tax losses in the latest fiscal year. The shares will be placed under supervision if the company witnesses after-tax losses in the latest two consecutive years.

After-tax losses are just a basis for exchanges to decide on which companies to warn or supervise, besides some other bases related to reduction in charter capital, a halt in production and business activities, violation in information announcement and shortcomings in shares transactions.

A company will be taken off the warning or supervision lists if it manages to resolve the causes that lead to its unsatisfactory situation, according to the exchange regulations.

This week, the HoSE removed the warning for shares of Ba Ria-Vung Tau Construction and Urban Development, and Song Da Urban & Industrial Zone Investment and Development.

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