Number of delisted companies drops in 2016
Number of delisted companies drops in 2016
Viet Nam’s stock market has seen 16 companies delist a total of 621 million shares from the two national stock exchanges this year, a sharp decline from the 34 firms in 2015.
Six firms delisted from the HCM Stock Exchange, while the number was 10 on the Ha Noi’s bourse.
The main reasons were long-term losses and serious violation of disclosure rules.
Mining and real estate companies accounted for two thirds of the delisted firms.
Difficult economic conditions and fierce competition has struck several real estate developers. Five realty firms -- Construction & Infrastructure Development (CID), IDICO-Petroleum Trading Construction Investment (PXL), Song Da No 12 (S12), Underground Works Construction (CTN) and Construction Joint Stock Company No 5 (VC5), all left the exchanges in May.
They were forced to delist after reporting losses for three consecutive years. The burden of interest rate expenses and declining sales ate away their profits.
Four mining companies -- Na Ri Hamico Mineral (KSS), Phu Thinh Metallurgy (PTK), Tay Bac Minerals Investment (KTB) and Bac A Metallurgy & Mineral (BAM) -- received “delisting fate” following infringement of information disclosure.
KTB, PTK and BAM did not submit their quarterly and annual financial reports since the second quarter of 2015, neglected requests from the HCM Stock Exchange.
Meanwhile, nearly 50 million shares of KSS were delisted after auditors refused comments on the company’s 2015 financial report relating to manufacturing costs of unfinished production and liabilities.
Long-term losses, losses exceeding actual value of charter capital and refusal of auditors in their 2015 annual reports were also reasons for logistics firm Thuan Thao Corp (GTT), Vinh Long Cereal and Food Corp (VLF) and educational service provider Sara Group (SRB) leaving.
Stock prices of most delisted shares were very cheap at below VND2,000 (US$0.10) per share.
Among the delisted firms, only Kim Long Securities Corp (KLS) and Hoa Phat Construction Stone JSC (HPS) voluntarily left the stock exchanges due to dissolution and merger.
Vietnam’s stocks have witnessed positive development, with an expansion of some 16 per cent in 2016, recording a five-year growth.
