Despite its ties to struggling Dong A Bank, Vietnam’s top jeweller Phu Nhuan Jewelry JSC’s stock is still considered attractive due to its growth potential. PNJ highly valued despite Dong A Bank fraud case In its latest monthly report, Vietnam Opportunity Fund of VinaCapital dedicated an entire section to Phu Nhuan Jewelry JSC (PNJ). The fund summarised the recent scandal that PNJ went through, then emphasised that the jeweller has delivered strong business results in 2018 so far, adding that the stock is undervalued following the recent price drop. “Our suggestion to PNJ is that senior management purchase shares on the open market or that the company implement a share buyback, as we think the stock is undervalued and such moves would be a vote of confidence in the company’s future,” said VinaCapital. PNJ is the fifth-largest equity investment of Vietnam Opportunity Fund, taking up 5.5 per cent of the fund’s portfolio as of June 30. The … [Read more...] about PNJ highly valued despite Dong A Bank fraud case
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VietNamNet Bridge - When the VN Index exceeded the 1,200 point threshold, it was a surprise that the stock market later fell so sharply. With closing at 900 points on July 5, the VN Index dropped by 25 percent, a sign showing that Vietnam has fallen into a bearish market. Even bank shares, called ‘King shares’ because of their attractiveness, have also seen prices decrease by tens of percent. It was the bank share price falls which forced the VN Index to plunge and turned Vietnam into the sharpest falling market in the globe. Vietcombank share prices dropped by 30 percent from the peak of VND75,000 per share, with BIDG by 50 percent, SHB 49 percent, VietinBank 45 percent, VP Bank 41 percent, ACB 40 percent and MBBank 27percent. The bank share price fell despite the satisfactory business results reported by the banks and predictions about their business performance this year. Analysts believe that bank shares were overvalued, which led to a profit-taking wave … [Read more...] about Is Vietnam falling into a bearish market?
VietNamNet Bridge - The State Bank of Vietnam says that outstanding consumer loans exceeded VND1,000 trillion in 2017, but market share held by finance companies shrank to less than 10 percent, very small compared with the total number of consumer loans. Consumer lending is an important business for banks Consumer lending has become an increasingly important business for banks. In 2017, VP Bank reported revenue and profit growth rates of 45 percent and 55 percent, respectively, from consumer loans. The State Bank of Vietnam says that outstanding consumer loans exceeded VND1,000 trillion in 2017, but market share held by finance companies shrank to less than 10 percent, very small compared with the total number of consumer loans. Its strategy of targeting young consumers and focusing on short term lending has quickly brought achievements. RELATED NEWS Consumer credit: nearly 47% of Vietnamese borrow money Consumer credit booms in Vietnam Thanh Mai … [Read more...] about Banks rush to provide consumer loans, compete with finance companies
VietNamNet Bridge - The entire banking system is expected to need VND63 trillion to increase their charter capital this year. The expected chartered capital of some banks The capital adequacy ratio (CAR) of Vietnam’s commercial banks decreased by 0.25 percent to 11.98 percent by the end of February 2018 in comparison with late 2017. The CAR of state-owned banks decreased by 0.16 percent to 9.36 percent, while that of joint stock banks by 0.44 percent to 11.03 percent. Banks have to raise their charter capital as soon as possible to satisfy Basel II standards. Eighteen out of 34 banks have announced plans to increase capital in 2018, and if the plans go smoothly, the total capital would increase by VND63 trillion. Of these, some banks want to raise capital by trillions of dong. VP Bank, for example, plans to have VND10.594 trillion more, while BIDV VND9.451 trillion. Smaller banks are also following daring capital increase plans. ABBank wants to double its capital … [Read more...] about Vietnam expects big changes in bank rankings after capital increases
Experts discuss investment opportunities in Vietnamese banking stocks at Fiinpro Talk 6 in HCM City on April 19. (Photo: Stoxplus) HCM City (VNA) - The banking sector will enjoy another strong year in 2018, experts told a seminar in Ho Chi Minh City this week. Speaking at Fiinpro Talk 6 on “Vietnamese banking stocks: investment opportunities and risks,” Nguyen Anh Tu, Deputy Director General of the State Bank of Vietnam’s Monetary Policy Department, said banking stocks did well in 2017 thanks to a favourable economic environment with a positive outlook for growth, well-anchored inflation, improved management of banks, better supervision by the Government, and a decrease in non-performing loans. With economic growth expected to be even better this year, it would be another good year for the banking sector, he said. Banks are more likely to make a profit on the back of a strong economy since it stimulates demand for credit, and Vietnam is a bank-based economy with … [Read more...] about Experts: Banking sector to enjoy another strong year