Investors at ACB Securities Co. (Source: VNA)Hanoi (VNA) - Shares ended June 19 on a positive note asbanks reacted to information that the new bad debt settlement resolution willlikely be approved by the National Assembly this week.
The VN-Index on the HCM Stock Exchange increased 0.73 percent toclose at 766.83 points. The benchmark southern index expanded 1.5 percent lastweek.
On the Hanoi Stock Exchange, the HNX-Index gained 1.12 percent toend at 99.41 points. The northern market index rose 1 percent a week ago.
Bank stocks were the major contributor to the market rise as allnine listed lenders on the two exchanges gained value.
Nam Viet Bank (NVB), the smallest capitalised bank among ninelisted banks, hit the maximum daily rise of 10 percent for a second session onthe Hanoi Stock Exchange, closing at 10,300 VND a share. These shares haveclimbed 110 percent since early this year.
Other banks such as Sai Gon-Hanoi Bank (SHB), Military Bank (MBB)and Sacombank (STB) increased 4.1 percent, 2.7 percent and 1.8 percent,respectively. These shares have also increased substantially since thebeginning of 2017.
Sai Gon-Hanoi Bank has gained 64 percent compared to December 30last year; Sacombank, up 50 percent; and Military Bank up 48 percent.
Three biggest listed banks including Vietcombank (VCB), Vietinbank(CTG) and BIDV (BID) rose by a more modest 0.5-1.5 percent each.
According to Bao Viet Securities Co, the National Assembly willlikely approve the new bad debt settlement resolution this Wednesday. Only oneissue remains unresolved surrounding the time frame, on which there arecurrently two perspectives. One is dealing with non performing loans (NPLs)ending December 31, 2016 and the other is applied to bad debts arising before2016 as well as during the period in which the bad debt settlement resolutiontakes effect.
“With the high possibility that the resolution of bad debt will beapproved, we think that the banking stocks may continue to gain momentum in thenext two sessions. As a result, the overall performance of the indices will likelyalso receive substantial support,” Tran Hai Yen, a stock analyst at Bao VietSecurities Co, wrote in a report on June 19.
Apart from banks, many other large-cap stocks picked up andcontributed to the market rise, including Vinamilk (VNM), brewery Sabeco (SAB),Petrolimex (PLX), VinGroup (VIC), Saigon Securities Inc (SSI) and PV Gas (GAS).
“From our view, the overall market outlook is positive in theshort-term,” Yen said, but warned about rising profit-taking pressure onlarge-cap stocks lacking supportive information.
Liquidity was positive with a total of 265.3 million shares wortha combined 5.1 trillion VND (224.1 million USD) traded on the two markets.-VNA
The VN-Index on the HCM Stock Exchange increased 0.73 percent toclose at 766.83 points. The benchmark southern index expanded 1.5 percent lastweek.
On the Hanoi Stock Exchange, the HNX-Index gained 1.12 percent toend at 99.41 points. The northern market index rose 1 percent a week ago.
Bank stocks were the major contributor to the market rise as allnine listed lenders on the two exchanges gained value.
Nam Viet Bank (NVB), the smallest capitalised bank among ninelisted banks, hit the maximum daily rise of 10 percent for a second session onthe Hanoi Stock Exchange, closing at 10,300 VND a share. These shares haveclimbed 110 percent since early this year.
Other banks such as Sai Gon-Hanoi Bank (SHB), Military Bank (MBB)and Sacombank (STB) increased 4.1 percent, 2.7 percent and 1.8 percent,respectively. These shares have also increased substantially since thebeginning of 2017.
Sai Gon-Hanoi Bank has gained 64 percent compared to December 30last year; Sacombank, up 50 percent; and Military Bank up 48 percent.
Three biggest listed banks including Vietcombank (VCB), Vietinbank(CTG) and BIDV (BID) rose by a more modest 0.5-1.5 percent each.
According to Bao Viet Securities Co, the National Assembly willlikely approve the new bad debt settlement resolution this Wednesday. Only oneissue remains unresolved surrounding the time frame, on which there arecurrently two perspectives. One is dealing with non performing loans (NPLs)ending December 31, 2016 and the other is applied to bad debts arising before2016 as well as during the period in which the bad debt settlement resolutiontakes effect.
“With the high possibility that the resolution of bad debt will beapproved, we think that the banking stocks may continue to gain momentum in thenext two sessions. As a result, the overall performance of the indices will likelyalso receive substantial support,” Tran Hai Yen, a stock analyst at Bao VietSecurities Co, wrote in a report on June 19.
Apart from banks, many other large-cap stocks picked up andcontributed to the market rise, including Vinamilk (VNM), brewery Sabeco (SAB),Petrolimex (PLX), VinGroup (VIC), Saigon Securities Inc (SSI) and PV Gas (GAS).
“From our view, the overall market outlook is positive in theshort-term,” Yen said, but warned about rising profit-taking pressure onlarge-cap stocks lacking supportive information.
Liquidity was positive with a total of 265.3 million shares wortha combined 5.1 trillion VND (224.1 million USD) traded on the two markets.-VNA
VNA
