Stock exchange profits plunge in H1

By Phuong Dong   August 18, 2019 | 08:39 pm PT
Stock exchange profits plunge in H1
An investor watches an electronic board showing stock information at the Ho Chi Minh Stock Exchange. Photo by VnExpress/Hoang Ha.
The Ho Chi Minh Stock Exchange’s pre-tax profits plummeted 48 percent year-on-year in the first six months to VND200 billion ($8.6 million).

There was also a steep drop in its revenues, which fell 40 percent to VND325 billion ($14 million), according to the exchange’s newly released half-yearly statement.

Transaction charges, which account for a large part of its revenues, fell by 56 percent to VND210 billion ($9.1 million). Revenue from trading software usage and other commercial operations also fell, while services and listing fees were the only two segments that were up.

The bourse (HoSE) has 377 listed stocks with a total market cap of around VND3.2 quadrillion ($138.06 billion), equivalent to 57 percent of Vietnam's 2018 GDP.

In June it began trading covered warrants, a new financial instrument aimed at diversifying stock market products in the country.

HoSE and the Hanoi Stock Exchange, which lists small and mid-sized companies, will merge under a company to be called the Vietnam Stock Exchange.

The new company, to be headquartered in Hanoi, will have a charter capital of VND3 trillion ($129.43 million) by combining that of both exchanges, and is expected to be set up by 2020.

The combined exchange is aimed at unifying regulations on stock listings and trading, and giving both bourses a uniform IT system. But they will continue to operate independently.

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