Statistics 17 banks which are listed on Hanoi Stock Exchange (HNX) and HCM City Stock Exchange (HSX) and registered for trading on the Unlisted Public Company Market (UPCoM) showed the general uptrend of bank stocks.
Stocks gained well in the first three months of the year included VCB (of Commercial Joint Stock Bank for Foreign Trade of VietnamVietcombank) with 25.4 percent increase, EIB (of Export Import Commercial Joint Stock BankEximbank) with 24.3 percent, MBB (Military Commercial Joint Stock BankMB) with 16.3 percent, CTG (of Commercial Joint Stock Bank for Industry and Trade of VietnamVietinBank) with 14.7 percent, etc.
Vietcombank still proved its leading position in both core business and share price. VCB stock currently has the highest market price on the stock market among listed bank stocks (closing the April 3rd session at 67,200 dong per share), creating a fairly long distance for the followed code which is BID of Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV, closing the April 3rd session at 35,700 dong per share).
In the first three months of the year, VCB along with CTG and STB (of Saigon Thuong Tin Commercial Joint Stock BankSacombank) were the three bank stocks in the list of 10 stocks most bought by foreign investors. Just behind MSN stock of Masan Group Corporation and domestic Exchange-Traded Fund (ETF) E1VFVNVN30, VCB shares were strongly acquired with a value of 1.185 trillion dong.
As being the bank with the largest market capitalisation and also dominating the segments of deposits as well as trade finance and foreign exchange market, Vietcombank is assessed to be the most benefited bank if the Vietnam stock market is upgraded.
The bank will continue its plan to raise capital in 201. Investors also expect an exclusive cooperation in bancassurance segment in 2019, although the exact time is not determined.
While being caught up in the issue of high-level personnel, and even information about the loss in the fourth quarter (Q4) was released in the beginning of the year, EIB stock of Eximbank still recorded good growth in Q1 with 24.3 percent.
Two bank codes including LPB (of Lien Viet Post Commercial Joint Stock Bank LienVietPostBank) and TCB of Vietnam Technological and Commercial Joint Stock Bank Techcombank) recorded decline in Q1 but overall this decline was not significant (0.1 percent for LPB and 0.6 percent for TCB).
Nevertheless, HDB stock of HCM City Development Commercial Joint Stock Bank (HDBank) tended to strongly decline in the last two weeks. Closing the April 3rd session, HDB stood at 28,250 dong per share, equivalent to more than 11 percent reduction in the last 12 sessions.
HDBank listed shares in early January 2018. Since then, the stock has dropped by 28 percent and compared to April last year, the reduction is up to 45 percent.
HDB is also in the group of 10 stocks most sold by foreign investors in Q1 with a volume of more than 10.5 million shares and a total value of 314.9 billion dong. This is the only bank code in the net selling list.
The banking sector is assessed to be neutral in 2019 by most analysts with differentiated returns, improved proportion of non-interest income on total operating income. However, it is difficult to increase Net Interest Margin (NIM) and maintain a high profit growth rate like in 2018.
