Vietnamese Tiếng Việt | Wednesday, October 18, 2017 | Advertise with Us
   
Text Size

As bank share prices soar, investors make more deposits at banks

Share
(2 votes, average 5.00 out of 5)

Tens of trillions of dong have been poured into bank shares as investors hope prices will continue to rise thanks to reasonable policies on resolving bad debts.

A strong cash flow has been going to shares, which is helped the VN Index climb to the 750 point threshold, a 9-year high.

Most bank shares have seen prices increasing by 20-100 percent in the last few months. VCB, BID, CTG, ACB, MBB and STB are the most wanted shares.

SHB shares  of the Saigon-Hanoi Commercial Bank increased by nearly 50 percent in price in the last two months, while NVB of National Citizen Bank rose by 100 percent in the last nine trading sessions, STB of Sacombank by 15 percent in the last month. 

Meanwhile, MBB of Military Bank has seen the price increase of 45 percent in the last three months, ACB by 55 percent in the last six months and VIB by 20 percent after a short time.

If investors made deposits earlier this year, they will have profit of 3-3.5 percent. Meanwhile, if they buy bank shares with money, the profit will be 10 times higher.

Bankers and financial investors also want to buy bank shares. Pham Doan Son, CEO of LienVietPostBank, has said he wants to buy 5 million more shares, while SCIC failed to buy 2 million MBB.

In the last one or two months, tens of trillions of dong worth of bank shares have been traded on official bourses, helping set new records in trading value. Just within three days, $1 billion worth of shares were traded, which had happened only once in the last 10 years.

Analysts commented that though the stock market is now ‘scorching hot’, it is quite different from 10 years ago, when ‘share bubbles’ were seen. The stability of the cash flow into the market and into bank shares shows this.

Though the stock market grew rapidly in the first five months of the year with a growth rate of 12 percent, there has been no sign of cash flow decline.  Foreign investors have recently even increased purchasing. 
The bank share price increases are backed by positive information. Nguyen Nhat Tien from VnDirect commented that investors are optimistic about banks’ performance as more reasonable solutions to deal with bad debts have been put forward.

The National Assembly is considering a draft resolution on settling bad debts with many deputies showing their support. SSI Research said the resolution would give banks more choices in dealing with mortgaged assets.

 

Source: VietNamNet

Maybe You Also Interesting :

» “King bank shares” return

Bank shares, called ‘king shares’, have seen prices escalate to record highs after a period of decline.

» HCM City banks’ bad debts fall below 4 per cent

Non-performing loans of credit institutions in HCM City were worth VNĐ60 trillion (US$2.64 billion) at the end of September, figures from the State bank of...

» Việt Nam says bad debts under control

Nonperforming loans (NPLs) must be revolved at the earliest, especially in the banking and financial sector, in order to strengthen Việt Nam’s economy,...

Popular News Categories:

- Asia & Asian  |  EU & Russia  |  America & US

- Facts  |  Urban  |  Faculty  |  Environment

- Business  |  Finance  |  Market Health

- Destination  |  Cuisine  |  Arts Music

- Cinema  |  Soccer  |  Sports  |  IT & Internet

Culture & Tourism:

-> About Vietnam  |  Things To Do

-> Destinations  |  Events Calendar

-> Visa Online  |  Flights & Transport

-> Accomodation  |  Tours & Cruise

-> Find more go to Travel.VN...

Login