Since the beginning of this year, BID coded shares led the banking sector, posting a 37 percent increase, and now standing at 38,000 dong per share.
In 2017, on the basis of positive macro-economic growth and favourable factors supporting the business of the banking industry, banking stocks have witnessed impressive price increases. In particular, BID-coded share of the Bank for Investment and Development of Vietnam (BIDV)as the bank with the second largest market capitalisationis one of the key stocks in the stock market. BID market price rose by nearly 70 percent in 2017 and continued to accelerate in 2018.
From 25,500 dong on December 29, 2017, BID led the banking group, closing 38,000 dong at the current time, equivalent to an increase of more than 48 percent. On the morning of February 26, BID-coded shares were traded at 37,900 dong, the capitalisation value was over 126.8 trillion dong, equivalent to over $5.5 billion dollars among businesses having top 10 capitalisation value on Hochiminh City Stock Exchange (STC).
Growth momentum of BID-coded shares is supposed to come from the bank’s business activity. According to the financial statement in 2017, BIDV’s net interest income rose sharply by 32.38 percent to 310.21 trillion dong, of which in the fourth quarter alone, the net interest income reached over eight trillion dong, contributing 25.78 percent to the total net interest income of BIDV. BIDV’s profit was more than 8.800 trillion dong, ranking among the top three banks having the highest profit and being the highest level ever.
Stock prices as well as operations of banks in 2018 are expected to outperform thanks to foundations created in previous years, as well as the successful completion of restructuring process in the first phase.
In the bank group dominated by the State, BIDV is more advantageous than other banks because room for foreign investors is almost intact. Choosing the right partner, the amount of capital poured into BIDV is certainly not small and this bank has more foundation to go up. This may also be the basis that investors in the stock market have trusted and poured money into BID over the last period.
