Vietnamese Tiếng Việt | Wednesday, February 21, 2018 | 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 :

» Banks scramble to sell assets to recover bad debts

Since Vietnam Asset Management Company seized Sai Gon One Tower using the authority conferred on it by Resolution 42 on settling bad debts, several banks have...

» Banks scramble to sell assets to recover bad debts

Since Vietnam Asset Management Company (VAMC) seized Sài Gòn One Tower using the authority conferred on it by Resolution 42 on settling bad debts,...

» Bad debts auctions on the roll

In late 2017 and early 2018, thousands of billions of dongs were retrieved by domestic banks, giving off signals of a new bad debt market being born.

Economy Latest

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7

Business & Businessmen

Our Latest Posts

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7

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