VietNamNet Bridge - The Vietnamese stock market in 2017 saw stock prices escalating, but not all investors could make money. The stock market in 2017 saw stock prices escalating Tuan, a 27-year-old investor, spends most of his time watching electronic boards on securities and trading floors and calling brokers. He was surprised that the CMG share price had dropped so dramatically despite the upward trend of the market. The high GDP growth rate, the government’s actions, and foreign capital flow are the three factors behind the strong rise of the stock market in 2017. ‘Too strong’, ‘crazy’ and ‘incredible’ are the words investors use to describe the rise of the stock market in 2017. RELATED NEWS GDP growth must rely on internal strength: economists Three scenarios for Vietnam stock market in late 2017 Kim Chi … [Read more...] about What’s behind the strong performance of the stock market in 2017?
The HCM City Development Bank, as it is formally known, has received approval from the southern bourse to list over 981 million shares under the HDB symbol at a reference price of VND33,000 (US$1.45). This is considered quite high compared to the prices of other bank shares listed on stock markets, and is behind only Vietcombank, VPBank and ACB. The listing, which is advised by Saigon Securities Incorporation (SSI), will value the lender at around VND32.4 trillion (US$1.43 billion), making it one of the 20 biggest companies by market capitalisation on HoSE. With an allowed trading band of 20% on each side of the reference price on opening day, HDB can potentially soar to VND39,600 on listing. HDB is currently one of the most favoured stocks in the over-the-counter (OTC) market, with its price rising consistently to occasionally reach VND31,000. Since December 14, 2017, it has ceased to trade on the OTC to prepare for the listing. On December 22, 2017, HDBank raised US$300 million … [Read more...] about HDBank to list on HCM stock market this week
Bank stocks turn attractive to foreignersBy Khang Minh In late 2017, share sales by HDBank and VPBank strongly drew attention from international organizations with the bidding volume much higher than that offered. Successful stories According to Fitch Ratings, Vietnamese banks were at the lowest rank in Asia at the end of 2016, suggesting numerous problems such as overall structure, bad debt and especially poor financial capability. Meanwhile, the banking system was going to pilot capital and risk management following Basel II standards. An article posted on Bloomberg in September 2017 echoed the same viewpoint, saying that capital shortage was the biggest challenge of the banking network. As bad debt figures remained vague, the problem was expected to be much more critical than that written in financial reports. However, the challenges gave banks an opportunity to speed up capital mobilization, including those from foreign investors. For long-vision players, Vietnamese banks were … [Read more...] about Bank stocks turn attractive to foreigners
Faint sheen on Asia’s most feasible targets In its latest report in 2016, Fitch ratings agency noted that the creditworthiness of Vietnamese banks is still the lowest in Asia. This remark shows that the banking system still has a lot of problems to be solved, ranging from restructuring to bad debts and lack of capital. This is especially important when Vietnam’s banks are about to adopt the Basel II standards.This viewpoint was reflected in an article on Bloomberg View last September. “Vietnamese banks lack capital,” the article says. As the amount of bad debt had yet to be fully reflected, the situation may be even more serious than what the official statistics show.However, this challenge also creates opportunities for the banks to raise new capital and push the return of foreign capital to Vietnamese lenders.“In investors’ eyes, Vietnamese banks are one of the most feasible targets in Asia,” said Bloomberg.This comment … [Read more...] about Foreign investors flock to limited-availability bank stocks
The FLC Chairman holds a portfolio of shares worth VND58,851 billion, an increase of VND25,045 billion compared to 2016. Mr Quyet’s portfolio includes 318,514,630 of ROS shares, 135,187,150 FLC shares, and 2,630,000 of ART shares. Chairman of Vingroup Pham Nhat Vuong ranks in second place with a total capitalization of VND55,962 billion, followed by Tran Dinh Long, Chairman of Hoa Phat Group Joint Stock Company with VND17,875 billion, and Nguyen Thi Phuong Thao, President and CEO of Vietjet Air with VND17,669 billion. Ms Thao now holds shares in VJC and HDB. With plans to list on the Ho Chi Minh Stock Exchange in 2018, there will be further changes in Ms Thao’s rank in the stock market.Wife of the Vingroup Chairman Ms Pham Thu Huong secured fifth position with a total capitalization of VND9,650 billion, trailed by Mr Bui Thanh Nhon, Ms Pham Thuy Hang, Ms Vu Thi Hien, Mr Nguyen Van Dat, and Ms Le Thi Ngoc Diep – wife of Mr Trinh Van Quyet. The ten richest … [Read more...] about FLC Group Chairman becomes richest man in stock market 2017