Banks market share

A transaction at Military Bank (MBB). MBB rose 6.8 per cent last week. — Photo MBB Shares are predicted to continue their short-term uptrend thanks to the return of cash flow this week. The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) had risen 2.5 per cent last week. An average of 917.3 million shares were traded on the southern exchange during each session last week, worth 15.6 trillion (US$664.3 million). With the positive movement of banking and large-cap groups, the market surpassed 1,080 points and closed with a good gain in the last session of last week. Liquidity also continued to increase, showing that investors' trading sentiment was more positive although profit-taking still presented in some sectors at the end of the session, said Viet Dragon Securities Co (VDSC). “With this development, investors can expect the cash flow to continue to support and help the market gradually move to higher price ranges in the near future.” “It is expected that … [Read more...] about Shares to keep uptrend this week

Transactions at Vietcombank. — Photo courtesy of the bank The State Bank of Viet Nam (SBV) just allowed Vietcombank to raise its charter capital from VND47 trillion (US$2 billion) to VND55 trillion ($2.3 billion) by issuing shares to pay dividends from the remaining profits of 2019 and 2020. Previously, the bank’s 2022 Annual General Meeting of Shareholders approved the issuance of 856.5 million dividend stocks at a rate of 18.1 per cent. Once the issuance is completed, its charter capital will increase by nearly VND8.6 trillion to more than VND55.89 trillion, thereby surpassing Vietinbank and BIDV to become the second largest bank, after VPbank. Vietcombank said that the mobilised capital will be spent on expanding the business scale to meet the economy’s requirements, and investing in improving management and operation plans. The bank also plans to issue a maximum of nearly 2.8 billion shares to pay dividends from the remaining profit of 2021 and the remaining profit … [Read more...] about Vietcombank permitted to raise capital to $2.3 billion

Asia’s increased borrowing in recent decades has augmented the region’s exposure to rising interest rates and heightened market volatility, said the International Monetary Fund (IMF). According to the IMF’s latest report on May 25, over 18 per cent of Vietnamese enterprises were found to have an interest coverage ratio (ICR) below one, indicating a high risk of default as of June 2022. Additionally, 18.32 per cent of companies had an ICR between 1-4, making them vulnerable to increased borrowing costs, while 63.36 per cent had an ICR of four, signalling a good debt repayment capacity. The report attributes the heightened risks to the rising cost of borrowing, as central banks tighten monetary policies and increase interest rates to combat inflation. Despite maintaining growth rates, companies face significant pressure due to higher borrowing costs, reducing their ability to repay debts. As of mid-2022, 17 per cent of Asia’s corporate debt was held by firms with interest … [Read more...] about IMF highlights rising debt risks for Asian companies