Bank stocks will continue to be hot?

In the previous shareholder meeting seasons, when the Board of Directors (NH) proposed to pay dividends in shares, shareholders immediately responded fiercely, demanding to pay in cash. But this year, when bank stocks rose sharply, leading the stock market to surpass historic peaks, things were different.

Shareholders like bonus shares

Most recently, at the general meeting of shareholders of Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank, stock code: LPB), Mr. Pham Doan Son, the general director, excitedly bragged to shareholders at the meeting last year. LPB is only about 7,000 VND so far has more than 21,000 VND, which has tripled in just 1 year, helping the bank’s longtime shareholders benefit. Therefore, the Board of Directors proposed shareholders to approve a plan to pay 12% dividend in shares to increase charter capital to VND 15,700 billion to enhance the business capacity of the bank instead of paying cash dividends. Shareholders not only did not object but also enthusiastically supported this plan. Shareholders also expressed their belief that the bank’s addition of new members to the Board of Directors will help LPB’s stock rise to be on par with ACB, MBB …

Similarly, at the shareholders meeting of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), Ms. Nguyen Thi Phuong Thao, Vice Chairman of HDBank, also persuaded shareholders to receive 25% dividend in shares and said that the dividend is equal to Stocks, shareholders can be realized into cash on the stock market very smoothly. Because shares of HDBank are attracting investors in the context of the stock market movements.

As noted, just in a short time, a series of banking stocks such as VIB, VPBank, and SHB … continuously rallied. Even some banks that have just been listed on the stock exchange have hit the ceiling for many consecutive sessions or have fluctuated strongly when there is new information about human resources and business activities such as SSB (SeABank), KLB (Kienlongbank).

For example, in just the past 3 months, the code VIB of the International Commercial Bank (VIB) has increased from about 42,000 VND / share to 55,600 VND / share, equivalent to an increase of 28.4%. While a year ago, VIB’s share price was only about 17,000 dong, even at times it dropped deeply to 13,000 dong / share.

Or with shares of Vietnam Prosperity Joint Stock Commercial Bank (VPBank, stock code: VPB), in the week before the April 30 holiday, in spite of the many strong declines in the market, VPB still increased rapidly and is currently at 58,500 VND / share, up 27.6% in the past 1 month. VPB’s story comes from the deal that VPBank sold 49% of the charter capital of FE Credit to a Japanese partner. Many investors expressed regret when they sold “non” this stock at the price of 50,000 VND, a week before the holiday …

Ms. Ngoc, an investor holding VIB shares, said this year the bank will divide bonus shares at the rate of 40%, so she plans to buy more in the adjustment sessions and hold until the bonus shares are divided. . Many other investors also shared to continue holding and buying more bank stocks in the portfolio to wait for dividends.

LienVietPostBank’s shareholders mostly agreed with the reports of the Board of Directors in the context that the bank’s share price was rising sharply. Photo: LAM GIANG

Bank is still the focus

Financial expert – Dr. Le Dat Chi said that in an economy, it is not good for banks to outperform businesses in the medium and long term. But on the stock market, bank shares are still the focus, with a high capitalization ratio. And with the business results of the Covid-19 season reaching high interest rates, the group of stocks in this industry that attracts the attention of investors is understandable. “Low deposit interest rates also encourage investors to move to the stock market, buy shares to become shareholders and enjoy dividends. Many F0 investors choose shares of banks with liquidity.” Expectation that the price will continue to increase, but the banking industry is also very sensitive when the policy changes, so F0 should be cautious “- Dr. Le Dat Chi analyzed.

According to experts, banking stocks in the coming time will have a strong differentiation. Banks involved in restructuring, handling bad debts, mergers … still have the ability to increase strongly and benefit from prices. But in the medium and long term, sustainable growth stocks must come from both “internal” and “real health” of banks, otherwise it will only be a temporary increase.

Looking from another angle, Mr. Nguyen The Minh, Director of individual customer analysis at Yuanta Securities Vietnam, said that banking stocks had reached the peak of growth when most of the first quarter business results were achieved. announcement and the AGM season is over, so this group will reduce its leading role. “The market is always looking for stocks with” stories “and the banking industry has recently expected high profits, high share dividends. These have been reflected in prices over time, so some Stocks may experience correcting pressure in the near future, not to mention the market going up thanks to the main increase from the group of banking stocks, the decline may also come from this group “- Mr. Minh said.

Recently, the Ho Chi Minh City Stock Exchange (HoSE) announced the results of reviewing the list of indices in April 2021. With VNDiamond index, there are 5 bank stocks out of 6 added stocks this time, including ACB, EIB, LPB, MSB and VIB. The new index portfolio will include 18 stocks, of which 10 stocks are in the banking sector. In the VN30 group, there were 9 banking stocks with high trading volume and value per session such as VCB, VPB, STB, CTG, MBB, HDB, TPB, BID …

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