Prices of Vietnamese joint stock commercial bank shares have fallen sharply in recent time on both official and unofficial market, losing 50 per cent of the value compared to late 2006 and early 2007.
Eximbank price was down VND7 trillion per share, falling by nearly VND9 trillion per share from the end of 2006.
The Hanoi bourse listed ACB price also dived VND50,000 per share to VND126,200 per share last weekend, down nearly a half against February this year.
Ho Chi Minh City bourse listed Sacombank shares lost 20 per cent within one month. Its price closed at VND66,000 per share on June 29.
Economic experts said bank shares will continue to undergo correction in short-term because it rose too fast in the beginning of this year.
In addition, joint stock commercial banks are planning to boost their registered capital through new share and bond issues, which is expected to attract over VND10 trillion from the market.
For example, ABBank plans to increase its capital from VND1 trillion to VND2.3 trillion, Eximbank from VND1.6 trillion to VND2.8 trillion; Sacombank from VND2.09 trillion to VND4.5 trillion.
Currently, Viet A Bank, Southern Bank, HDBank, Nam A Bank, Saigonbank, SCB are waiting approval to increase capital from VND1 trillion to VND2 trillion or VND2.5 trillion this year.
The bank shares went down despite their record operations in the first months this year.
Eximbank grossed VND260 billion in pre-tax profit in the first half, increasing 92 per cent on year. It targets the figure at VND610 billion in 2007.
EAB Bank earned pretax profit of VND127 billion in first six months, compared with VND400 billion targeted for the whole year.
Sacombank obtained VND530 billion in the period, up 142 per cent against the same period last year, and ACB was the bigger earner with profit of VND770 billion as of May 31, more than the last whole year.
Currently, many investors from the US want to invest in Vietnam financial market through buying local bank shares, said EAB general director Tran Phuong Binh. (Labour)
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