Shares of Vietnamese commercial joint stock banks have seen a strong recovery in the past several weeks, with increasing price and trading volume on both official and unofficial markets.
The only banking stock on the Hochiminh bourse, STB, has been recently taking the lead in trading volume on the market, with 163,836 shares in September 20 session at a price of VND64,500 each.
ACB, the biggest stock on the Hanoi bourse, has also had the largest trading volume in several weeks, with 277,700 shares at VND138 each.
Other banking stocks on the OTC market such as Dong A, Eximbank, Habubank and Techcombank have reported an increase of 2-5 per cent in both price and volume in the past ten days.
The report on high profit from commercial banks in the January-August period has helped to recover investors’ faith in banking stocks, said Bao Viet Securities Co. director Vo Huu Tuan, quoting ACB’s profit of VND1.1 trillion (US$68.75 million) and Sacombank VND900 billion.
With this result, profit of the two banks this year will surpass the expected target, pushing their shares price up, said the securities expert Tran Ngoc Nam.
Moreover, the prices of many banking shares have reduced by 50-60 per cent from four months ago. With high profit growth, this price is rather cheap and it is time to buy in, said securities expert Bui Ngoc Tuoc.
“Vietnam’s financial sector boasts great potential because with the country’s high economic growth rate in the future, people will need more banking services,” said Dong A Bank CEO Tran Phuong Binh.
However, shares of Vietnamese banks will be hurt when more and more new banks will be established and foreign banks desire to set up branches in Vietnam, taking many customers from existing banks, an expert warned.
Banks’ profit can grow 30-50 per cent on year, but additional shares will be able to dilute the price and reduce dividend for this year, securities analyst Tran Khac Cung added. (Pioneer)
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