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‘$1bil club’ now has one member only
The ‘$1bil club’ became a one-member club late last week after the other remaining members withdrew due to the continued fall of the market.
Big names quit list of $1bil club
In early April 2008, when the VN Index was over 500 points, four companies still had the market capitalisation value at over $1bil (VND17tril), namely Vinamilk (VNM), Phu My Fertiliser (DPM), Sacombank (STB) and Asia Commercial Bank (ACB).
ACB, which now lists its shares on the Hanoi bourse, always has the highest market capitalisation value in comparison with other listing companies, though the Hanoi bourse is considered to have less strict requirements on listing companies than the HCM City bourse.
On April 1, 2008, ACB’s market capitalisation value was reportedly at nearly VND25tril, or over $1.5bil. Meanwhile, the market capitalisation value of VNM, which has the highest market capitalisation value on the HCM City bourse, was a little more than VND19tril at that moment.
However, also at that time, the Hanoi bourse only had ACB with the market capitalisation value at over VND10tril, while the HCM City bourse had seven, namely VNM, DPM, STB, PPC, VPL, PVD and VIC.
With the VN Index having fallen from 500 points to 352 points, and the HASTC Index dropping to the 100-point threshold, only ACB is left with the market capitalisation value of over $1bil, with VND19,850bil.
Currently, the total market value of VNM is VND15,100bil, DPM nearly VND16tril and STB VND12tril.
The ‘VND10tril club’ now has only five names only, ACB, DPM, VNM, STB and PVF (PetroVietnam Finance). The latter has just entered the bourse, and now has the total market capitalisation value of VND10,400bil.
The total market capitalisation value of Vietnam’s stock markets, both Hanoi and HCM City bourses, has dropped from nearly $20bil at the end of October 2007 to $12.3bil now.
However, the market capitalisation value decreases in Vietnam’s market prove to be nothing compared to the falls in the big stock markets in the world.
The US stock market lost $1tril in just one trading session after the US House of Representative rejected the bailout plan at the end of September.
In early November 2008, Berkshire Hathaway of the world’s most famous securities investor Warren Buffett announced profit in Q3 down by 77% and the loss of over $1bil.
But still leading the market
Though the market capitalisation values of many companies have decreased sharply, the shares of the companies will still lead Vietnam’s stock market in the time to come.
Currently, there are 316 companies listing on both Hanoi and HCM City bourses. These had the total market capitalisation at the end of October 2008 of nearly $12.5bil. The average P/E index of listing companies has dropped to below 10, while the P/B to 1.8. More than 20 share items are being transacted at prices below their face values.
In fact, the 10 companies which have the biggest market capitalisation values in Vietnam’s stock market still operated normally in the first10 months. ACB reported the profit of nearly VND1,400bil in the first nine months of the year, VNM has reported the profit over $1,000tril through the end of Q3, STB VND950bil, and DPM VND1,600bil. Other companies like PVD, FPT, PVF all expect profit of approximately VND1tril in 2008.
In fact, the share items favoured by both domestic and foreign investors remain the blue-chips. ACB, VNM, DPM, STB and PVD are always listed among the 10 share items seeing the biggest transaction volumes.
The companies are also the enterprises which have the highest numbers of listed shares. ACB is now listing 462mil shares, DPM 380mil, STB 444mil, VNM 175mil, PPC 326mil, VIC 120mil, VPL 100mil, and PVD 110mil.
Tien phong
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