Saturday, June 13, 2009

Stock market upswing a shot in the arm for brokerages

The current stock market boom has been a windfall for securities companies as they garner more accounts and brokerage fees, and see profits surge.

Viet Dragon Securities Corp. collected VND6 billion (US$350,800) in brokerage fees in the last two months, compared with VND1.6 billion ($93,553) a month last year.

Nguyen Mien Tuan, general director of the HCMC -based securities company, said with the registration of a large number of new accounts in the past few months, the total number of accounts at present is 60 percent higher than that in late last year.

Doan Duc Vinh, chairman of Au Viet Securities Corp., said nearly 600 new accounts had been opened at his company in the past three months.

Nguyen Ho Nam, general director of Sacombank Securities, said his company posted a profit of VND55 billion ($3.2 million) in the first four months of this year and most of it came from brokerage fees.

The VN-Index, Vietnam’s main stock index, last Friday increased 20.53 points, or 4.48 percent, to close at 478.72. It has rallied 103 percent since reaching a four-year low on February 24.

As stock prices have increased on Ho Chi Minh City and Hanoi markets as well as on the over-the-counter market, brokerages which engage in trading securities themselves have also earned profits.

Johan Nyvene, chief executive officer of Ho Chi Minh City Securities Corporation, said his company’s revenue in the first four months was VND87 billion ($5 million) and pre-tax profit was VND65 billion ($3.8 million), adding securities trading contributed most to the figures.

Hiring rush

Many securities companies are now in strong recruitment mode, with the market’s rally translating into higher demand for human resources.

They say they need more staff also because UPCoM, or the regulated over-the-counter market, will open on June 24.

International Royal Securities said though it had recruited 15 staff members in the past two months, it is now looking to hire 4-5 people more, local online newspaper VnExpress reported last Thursday.

Pham Linh, general director of Vietnam International Securities Co., said his company had cut 40 percent of its workforce last year but needed analysts now.

Au Viet Securities’ Vinh said his firm plans to increase its workforce by 10 percent this month and give the staff a 10 percent raise.

FPT Securities is also looking for new staff for its customer services and brokerage departments, VnExpress said.

The increase in the number of accounts means there is a shortage of customer service staff and traders, the online newspaper quoted Nguyen Van Dung, the company’s head of brokerage department, as saying.

Source: TBKTSG Online


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