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Vietnam: Banking stocks keep rising
The price for stocks of banks continue to attract cash flow and have increased again, helping bank assets reach new records.
At the trading session on the morning of June 14, Vietinbank (CTG) shares rose by nearly VND1,000 per share to reach nearly VND54,000 a share. At the last trading session of last week, this stock hit the ceiling (+7%) after Vietinbank was approved by the State Bank to pay dividends to increase capital by nearly VND10 trillion.
VietinBank will increase its charter capital from VND37,234 billion to over VND48 trillion in the form of issuing shares to pay dividends. At the current record high price, VietinBank market capitalization is nearly VND197 trillion (equivalent to $8.5 billion).
Techcombank (TCB) shares of billionaire Ho Hung Anh also moved slightly in the morning trading session of June 14 to reach VND53,000 per share, just a little bit lower than the historic peak of VND54,800/share on June 3.
According to Forbes, as of June 13, Mr. Ho Hung Anh, chairman of Techcombank, had total assets of around $2 billion.
Banking stocks are still considered the mainstays of the Vietnamese stock market, with bright prospects. According to VDSC, the banking industry is forecast to have profit growth rate of 27% this year.
The current market capitalization of 16 listed banks contributes more than 35% of the VN-Index capitalization and 42% of VN30-Index capitalization, a sharp increase compared to 20% of the VN-Index capitalization one year ago.
Vietnam’s economy is predicted to recover in 2021, while banks are the group that always benefit when the economy recovers.
In the opposite direction, the banking group also bears the same risks as the Vietnamese economy. The 4th wave of Covid-19 is still spreading, with a much larger scale than the previous three times, affecting business activities of many industries. The banking sector has been affected by the pandemic, both directly and indirectly through bank customers.
V. Ha
Source: https://vietnamnet.vn/en/business/banking-stocks-keep-rising-745785.html