Shares ended Monday on a positive note as banks reacted to information that the new bad debt settlement resolution will likely be approved by the National Assembly this week.
The VN-Index on the HCM Stock Exchange increased 0.73 per cent to close at 766.83 points. The benchmark southern index expanded 1.5 per cent last week.
On the Ha Noi Stock Exchange, the HNX-Index gained 1.12 per cent to end at 99.41 points. The northern market index rose 1 per cent a week ago.
Bank stocks were the major contributor to the market rise as all nine listed lenders on the two exchanges gained value.
Nam Viet Bank (NVB), the smallest capitalised bank among nine listed banks, hit the maximum daily rise of 10 per cent for a second session on the Ha Noi Stock Exchange, closing at VND10,300 a share. These shares have climbed 110 per cent since early this year.
Other banks such as Sai Gon-Ha Noi Bank (SHB), Military Bank (MBB) and Sacombank (STB) increased 4.1 per cent, 2.7 per cent and 1.8 per cent, respectively. These shares have also increased substantially since the beginning of 2017.
Sai Gon-Ha Noi Bank has gained 64 per cent compared to December 30 last year; Sacombank, up 50 per cent; and Military Bank up 48 per cent.
Three biggest listed banks including Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) rose by a more modest 0.5-1.5 per cent each.
According to Bao Viet Securities Co, the National Assembly will likely approve the new bad debt settlement resolution this Wednesday. Only one issue remains unresolved surrounding the time frame, on which there are currently two perspectives. One is dealing with non performing loans (NPLs) ending December 31, 2016 and the other is applied to bad debts arising before 2016 as well as during the period in which the bad debt settlement resolution takes effect.
“With the high possibility that the resolution of bad debt will be approved, we think that the banking stocks may continue to gain momentum in the next two sessions. As a result, the overall performance of the indices will likely also receive substantial support,” Tran Hai Yen, a stock analyst at Bao Viet Securities Co, wrote in a report on Monday.
Apart from banks, many other large-cap stocks picked up and contributed to the market rise, including Vinamilk (VNM), brewery Sabeco (SAB), Petrolimex (PLX), VinGroup (VIC), Saigon Securities Inc (SSI) and PV Gas (GAS).
“From our view, the overall market outlook is positive in the short-term,” Yen said, but warned about rising profit-taking pressure on large-cap stocks lacking supportive information.
Liquidity was positive with a total of 265.3 million shares worth a combined VND5.1 trillion (US$224.1 million) traded on the two markets.
Tags:
Tags:
The United Capital Management Joint Stock Company (Unicap) which manages investment funds will provide financial services to FLC and Faros in the near future.
Techcombank has announced that two separate legal entities managed by Warburg Pincus will invest over US$370 million into the Bank, subject to appropriate regulatory approvals.
In only the first two months of this year, the banking, financial services and insurance sector (BFSI) of Vietnam received up to US$1.45 billion worth of investment.
It is feared that the escalating trend of trade protectionism will hinder global growth and make many businesses struggle for survival.
According to the World Bank, remittances to Vietnam in 2017 are estimated at a record high of US$13.81 billion, increasing by US$1.9 billion, equivalent to 16% over 2016.
Within less than five months leading the Southeast Asia Joint Stock Commercial Bank (SeABank), Nguyen Canh Vinh has resigned from this position since February 8, 2018, for personal reason.
