Brokerage firm VDS suffers loss in Q1
Brokerage firm VDS suffers loss in Q1
Rong Viet Securities (VDSC) posted a record loss of VND88.4 billion (US$3.78 million) in the first quarter of 2020 as the company suffered from proprietary trading. 
In the first quarter of 2019, VDSC made a profit of VND21.15 billion.
The loss was blamed for proprietary trading's poor performance in the January-March period.
On March 31, total book value of VDSC’s financial assets was VND474.26 billion, up by VND60 billion from the beginning of the year.
But the total re-value of the assets was nearly VND298 billion, down by 37 per cent from the book value total.
The worst-performing assets included Development Investment Construction JSC (HoSE: DIG), Binh Son Refining and Petrochemicals (UPCoM: BSR), and real estate firm Dat Xanh Group (HoSE: DXG).
Proprietary trading is expected to pick up in the second quarter as the local stock market has shown signs of recovery since it bottomed at a three-year low at the end of March.
The decline of the stock market also made VDSC suffer lower income from brokerage activity, which fell 10 per cent year-on-year to VND20.5 billion in the first quarter.
Incomes from margin lending interests and receivables were down 8.6 per cent on-year to VND48 billion.
Margin loans and cash advances were worth VND1.36 trillion, down by VND300 billion from the beginning of the year.
VDSC targets to record at least VND45 billion worth of pre-tax profit in 2020, down 6 per cent year on year.
The company shares (HoSE: VDS) ended Monday flat at VND6,300 apiece.
