HÀ NỘI – The Securities Journalists Club on Wednesday announced the top 10 biggest events on Việt Nam’s stock market in 2017.

1. Inauguration of the derivatives market

On August 10, Deputy Prime Minister Vương Đình Huệ pressed the button to launch the derivatives market, marking a milestone in the development of Việt Nam’s securities market.

The derivatives market, starting with the VN30-Index future contracts first, was hailed as an important component to completing the structural development of the financial market as well as key part of the development strategy for the securities market in the future.

The market, managed by the Hà Nội Stock Exchange, saw over 946,300 contracts traded and 15,800 trading accounts set up over the past two months.

2. VN-Index hits decade-high

After being hit hard by the global financial crisis in 2008 when foreign capital fled, Việt Nam’s benchmark VN-Index reached a decade-high of 970 points on December 4, a gain of 46 per cent over the end of 2016.

Việt Nam’s stock market capitalisation hit VNĐ3.36 quadrillion (US$147.4 billion) in 2017, up 73 per cent from 2016-end, and equivalent to 74.6 per cent of the nation’s gross domestic product (GDP). This number has surpassed the Government’s target (market cap to GDP ratio) set for 2020.

3. Listings of banks and billion-dollar companies

Five banks have debuted shares on the securities market this year, lifting the total number to 13 out of over 30 joint-stock commercial banks nationwide. Some banks have been granted transaction codes and are going through final procedures to trade shares in early 2018, like Bắc Á Bank, Techcombank and TPBank.

In addition, a number of listed businesses have seen its market value swell by an additional US$1 billion, like Vinamilk (VNM), VinGroup (VIC), PV Gas (GAS), Sài Gòn Beer-Alcohol-Beverage Corporation (SAB), steelmaker Hòa Phát Group (HPG) and FLC Faros Construction JSC (ROS).

4. Foreign traders buy total net value of $1.2 billion

2017 has witnessed the strongest-ever trading by foreign investors with total net buy value of reaching nearly VNĐ26 trillion ($1.2 billion), exceeding the peak of over VNĐ24 trillion recorded in 2007.

Ending November, the total value of foreign portfolios hit $31.4 billion, up 81.3 per cent over the end of 2016.

5. FLC chair sells 8.93% capital under the counter

On November 10, the State Securities Commission (SSC) slapped a fine of VNĐ65 million ($2,850) for Trịnh Văn Quyết, chairman of real estate giant FLC Group (FLC), for failing to report sale of 57 million shares, equivalent to 8.93 per cent of the company’s capital, from October 20-24.

6. Criminal prosecution for share price manipulation

On December 4, Nguyễn Vân Giang, former director of DongA Securities Co Ltd’s Hà Nội branch, was indicted for manipulating share prices of Consultancy Design & Urban Development JSC (CDO) on the HCM Stock Exchange.

SSC also issued a fine of VNĐ600 billion on individual investor Đỗ Thị Cẩm Thúy for distorting prices of Split Stone JSC’s shares on the Hà Nội Stock Exchange.

7. 15 audited financial statements not accepted

For the first time, audited financial statements for 2016 of 15 listed companies including KLF Joint Venture Global Investment JSC (KLF), Sông Đà Investment and Construction JSC (SDD), CMC Investment Joint SJC (CMC) and Hưng Long Mineral and Building Material JSC (KHL) were not accepted by the SSC.

The auditing company, Thăng Long Auditing and Valuation Co Ltd, was suspended from working in the securities industry.

8. Sacombank plans to move the listing exchange

After taking the hot seat in Sacombank (STB) in June, chairman Dương Công Minh surprised shareholders by announcing a plan to moving its listing from the HCM Stock Exchange to the Hà Nội’s bourse and changing its stock code from STB to SCM on feng shui (geomancy) considerations. However, the bank’s shareholders did not approve of this plan.

9. Year of record share sales

2017 marked a number of successful State capital divestments, including a 53.6 per cent stake of brewer Sabeco (SAB) worth VNĐ110 trillion and a 3.33 per cent stake of dairy giant Vinamilk (VNM) worth VNĐ8.99 trillion.

10. Spectacular bond market growth

The bond market has become more active with total listing value topping VNĐ1 trillion, up 8 per cent over 2016 and equal to 23 per cent of nation’s GDP. The average trading value was VNĐ8.9 trillion per session, up 38 per cent year-on-year.

This year also witnessed success in Government bond (G-bond) auctions with about VNĐ189 trillion ($8.3 billion) worth of G-bonds bought. – VNS