20.10.2020, 02:18

Bank shares are hot: a series of record numbers have been set

Shares of many banks have recorded a series of records in price and liquidity in the past few days. The boom is supported by positive news about macro and industry, along with individual stories of each bank.

A transaction point of VietinBank. (Source: VietinBank)

Record numbers were recorded

Last week, more than 666.3 million bank shares were traded among investors, corresponding to a transaction value of VND 14,479 billion, the highest weekly liquidity in the group in recent years.

In which, TCB attracted attention with a trading volume of nearly 170 million units, a record level since this stock was listed on HOSE. TCB liquidity increased strongly thanks to the boom in the last three trading days of the week, especially October 14 session with the volume of nearly 75 million units.

Along with liquidity, the price of TCB also suddenly increased to the ceiling on October 14 after a long period of sideways decline.

Unexpected transactions at TCB occurred in the context that the market did not record any remarkable information related to Techcombank’s business activities. At the same time, there is also no organization or individual to announce any transaction related to this stock.

Last week, CTG shares of VietinBank also recorded a price increase of 12.7%, marking the week of strongest price increase of this stock since the beginning of the year. Besides, the trading volume reached over 67.6 million shares, the highest level since March 2018.

Not surprisingly like TCB, the boom of CTG appeared after the Government issued Decree 121/2020 amending and supplementing Clause 2, Article 12 of Decree 91/2015 on state capital investment in enterprises and management, using capital and assets in enterprises. The amendment of the decree has created a legal basis for VietinBank to increase its charter capital from share dividends.

Stock movement of CTG. (Source: VnDirect)

On the HNX, ACB also “created a wave” when it continuously owned a “huge” liquidity level with trading volume in the last 10 sessions reaching nearly 171 million units, equivalent to 17.1 million shares / session.

At its highest point on October 9, ACB liquidity reached over 48.7 million shares with trading value at nearly 1,165 billion dong. In particular, the put-through volume reached approximately 40 million shares, accounting for over 82%. Notably, all of these shares were traded at the price of 24,000 VND / share and were traded internally by foreign investors.

ACB’s liquidity increased dramatically while Dragon Capital’s two investment funds registered to sell a total of more than 46.6 million shares. In addition, ACB is also completing the final steps to transfer listing shares from the Hanoi Stock Exchange (HNX) to the Ho Chi Minh City Stock Exchange (HOSE).

Recently, HOSE said it has received registration documents to list more than 2.16 billion shares of ACB. According to ACB management board, the exchange is expected to be carried out in November-December.

At UPCoM, two stocks LPB and VIB were also the focus of the market with remarkable trading movements.

At the end of October 16, VIB’s market price stopped at 33,200 VND / share, an increase of 92% compared to the end of 2019 with the average matching volume of the last 10 sessions reaching nearly 2.7 million units, accounting for about 6% the whole UPCoM market.

Meanwhile, LPB also recorded an increase of 79.5%, reaching the highest level since April 2018 at VND 12,600 / share.

Along with the price, the liquidity of LPB is also continuously maintained at a high level. Since mid-September, the trading volume of this stock often exceeded 15 million units / session. According to HNX’s statistics, in September, the trading volume of LPB shares accounted for 25% of the entire UPCoM exchange, leading the stocks in this market.

Bank shares are hot: a series of record numbers have been set

Changes in the price of bank shares since the beginning of the year. (Source: Aggregate management at adjusted prices).

The dynamics of bank stocks

The strong uptrend of many banking stocks occurred in the context that the market’s excitement was maintained during the past two months.

Since the end of July, the VN-Index has increased a total of nearly 145 points, corresponding to an increase of more than 18%. While HNX-Index increased by 30% and UPCoM – Index increased by about 17%.

Viet Rong Securities (VDSC) said that the low interest rate environment along with a series of macro signals starting to turn to a more positive color gamut helped Vietnam’s stock market to extend the rising streak in August and September.

In addition, the number of cases spreading in the community which have been quickly extinguished since early September has also strengthened investor sentiment. Accordingly, the VN-Index did not fall deeply even though US stocks had strong corrections, or statistics of continuous net selling by foreign investors.

In October, the State Bank of Vietnam (SBV) continued to reduce a series of executive interest rates as well as the deposit interest rate ceiling. Although the actual impact of this interest rate cut is considered to be limited as the liquidity in the banking system is still abundant, the move from the SBV this time reinforces the attractiveness of the stock market compared to other investment channels such as gold or real estate.

In addition to macro factors, the banking industry itself has continuously received many positive news recently, especially the wave of exchange from HNX and UPCoM to HOSE of ACB, VIB, LienVietPostBank and SHB.

According to analysts, the listing on HOSE will help banks improve their image and reach out to many investors thanks to stricter standards of transparency and stock liquidity. Thereby, the bank will have more opportunities to find strategic partners, perform share offerings or sell subsidiaries mobilize more resources for business activities.

“The floor change wave helps to re-evaluate stock value. Accordingly, the move to HOSE from HNX and UPCoM will help stocks to have higher valuation due to more transparency in information and high liquidity”, Securities BIDV commented.

Another factor that helps investors increase their expectations for banking stocks is the possibility that the business results in the third quarter in particular and the whole year 2020 are not as bad as expected.

Recently, a number of banks have announced 9-month business results with strong profit growth, even exceeding the plan for the whole 2020. Specifically, LienVietPostBank and MSB have both surpassed their profit targets for the whole year while VIB and MB also completed 90% of its plan in just three quarters.

Source: vietnambiz.vn – Translated by fintel.vn