Local cashew industry to face challenges next year

Truc Le

Orient Securities JSC has been suspended from buying equity on the Ho Chi Minh Stock Exchange (HoSE). — Photo baodauthau.vn

The Ho Chi Minh Stock Exchange (HoSE) on Monday decided to suspend Orient Securities JSC (HoSE: ORS) from all securities purchases.

The decision was made after the company was placed on the State Securities Commission (SSC)’s under-special-control list from October 16, 2018 to February 15, 2019.

According to the commission’s statement, Orient Securities had failed to meet the requirements on establishment and operation as stated in article 70 of the Securities Law 2006.

The brokerage firm was also suspended from proprietary trading on the equity market. For 60 days following its suspension, Orient Securities could only sell its existing assets.

The company has 24 million shares listed on the Ha Noi Stock Exchange as ORS, and the northern market regulator has not yet decided whether it will suspend the company from all market trading activities.

The firm’s shares jumped 3 per cent on Monday to close at VND3,400 (US$0.15) per share. It was flat on Tuesday.

Orient Securities JSC was founded in late 2006 with a charter capital of VND60 billion ($2.63 million) by large financial institutions Orient Commercial Bank (OCB) and Saigon Services JSC (Savico).

The company has recorded two and a half consecutive years of losses with a cumulative loss of VND229 billion.

As of June 30, the company’s total asset was valued at VND442 billion, 86 per cent of which was its receivables.

Most of the receivables are related to the scam at the Vietnam Industry and Trade Joint Stock Commercial Bank (Vietinbank), committed by former bank official Huynh Thi Huyen Nhu.

If those receivables are not collected, the company would have to make an appropriate provision.

The risk provision could reduce its equity capital to negative VND322 billion from VND58 billion, making the firm’s operation liable to be suspended by SSC. — VNS

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