Statistics of 17 banks listed on both HCM City Stock Exchange (HSX) and Hanoi Stock Exchange (HNX) and registered on the Unlisted Public Company Market (UPCoM) in the first six months (H1) of the year showed that the number of stocks recorded losses overwhelmed the number of gains.
Specifically, according to the closing price in the last session in June 2019 (June 28th), 11 out of 17 bank stocks saw decline in value in H1 2019. In the second quarter alone, up to 14 bank stocks experienced reduction in market value.
The biggest decline was of TCB stock (Vietnam Technological and Commercial Joint Stock Bank (Techcombank)). Closing the session on June 28th, TCB closed at 20,350 dong per share, down by 20.5 percent compared to the beginning of the year. Recording similar decline was LPB share of Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) with 15 percent decrease in H1.
Although the number of stocks declining accounted for the majority, except the above two stock codes, the decline of the remaining stocks was fairly modest, mainly below five percent.
On the upside, while in the first quarter (Q1), VCB stock of Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) still ranked first in both market price and increase level, at the end of June, EIB stock of Export Import Commercial Joint Stock Bank (Eximbank) surpassed VCB to become the stock code with the highest increase of 6.8 percent in Q2 alone and 34.3 percent in H1.
This is a surprise in the banking group because when considering the basic factors, this bank incurred problems in senior personnel in H1. However, despite the unfavourable factors from the bank itself, EIB stock has still continuously increased and the current price is even at the peak zone in its history.
Furthermore, in the Q2 sessions, there were numerous large put-through transactions of EIB shares. Typically, nearly 60 million shares were traded on the April 3rd session with put-through value reaching up to 1.071 trillion dong.
Only increased by 4.8 percent in Q2 but the achievements in Q1 helped VCB shares rose by 31.5 percent in H1 of 2019. VCB still ranked the first in market price in the group of bank stocks, reaching 70,500 dong per share at the end of June. In addition, with the largest scale in the group of banks, the increase or decrease of this stock has the strongest influence on the VN Index.
Unfortunately for some stock codes, despite seeing good growth in Q1 such as CTG of Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) with 14.7 percent, VIB of Vietnam International Commercial Joint Stock Bank (VIB) with 7.7 percent, they significant declined in Q2 by respectively 13.1 percent and 12 percent.
Considering the market price, most bank stocks are still fluctuating around 20,000 30,000 dong per share. Three bank stocks have prices below par, including Nam Viet Commercial Joint Stock Bank (NVB), LPB and Saigon Hanoi Commercial Joint Stock Bank (SHB).
