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Securities companies to raise profit targets on recovered market
Many securities companies are considering adjusting their profit targets for 2009, expecting this year’s profit to be higher than the goals they made earlier this year.
The stock market has witnessed ‘strong waves’ in the second quarter. In the last three months, the VN Index and HNX Index have increased by over 100 percent with many records in trading volume and value set. Though indexes have been decreasing for a few trading sessions, analysts still believe that these are just momentary decreases and that the market will prosper in the time to come.
Securities companies, emboldened by the warming of the stock market, have decided to increase profit targets.
When setting business targets, a lot of securities companies were in bad condition due to the continued decline of stock indexes. Many of them just set moderate targets for this year, while others just dreamed of breaking even.
However, the recent ‘strong waves’ in the market have made securities companies more self-confident.
Trang An Securities Company, for example, earlier this year said it would just strive to balance the accounts in 2009, a year that economists warned would be very difficult for all businesses. However, General Director of Trang An Le Ho Khoi has said that if the VN Index returns to around 400-450 points, the company will earn 7-9 billion dong in profit this year. He has even predicted a higher profit level if the stock market prospers even further.
Nguyen Tho Phung, Deputy Director of Vietinbank Securities Company, has predicted that the company will have obtained 50 billion dong in profit by the end of June, or 83 percent of its yearly profit plan, while profit in the second half of the year will be the same at least.
Nguyen Van Dung, General Director of Tan Viet Securities Company, said that if the market keeps rising, the company’s profit will be double the planned level.
“The brokerage service of Tan Viet has been doing very well. We foresee that the yearly plan will be fulfilled in the first six months of the year,” he said.
Not only securities companies, enterprises in other business fields have also obtained impressive profit figures. The Da Nang Rubber Company, for example, earned 122 billion dong in profit in the first five months of the year, fulfilling 305 percent of its yearly plan. Bao Viet insurance group earned 842 billion dong in profit during the same period, fulfilling 108.6 percent of its yearly plan.
As such, it is expected that enterprises in different business fields will heighten their profit targets after considering the better signs of the national economy.
Le Thi Mai Linh, Deputy Chairwoman of SeaBank Securities Company, said that as securities companies greatly depend on the market’s performance, they always have to set business strategies suitable to different moments. Linh said that it is now the right time for companies to reconsider their business plans as they have the business results for the first half of the year.
VietNamNet, DTCK
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