Surprisingly, the price of Sacombank shares have fallen even as the bank is set to become the first bank in Vietnam to go public very soon. Sacombank’s shares were trading at round 78,000 to 79,000 dong at the start of week June 19 on the informal market then falling to 75,000 dong three days later. At this price, a fair quantity of shares were bought by some institutional investors which helped push up the price again to 78,000 dong by the end of the week. Some market analysts said considering that Sacombank’s maiden share auction is weighted toward strategic shareholders, when the shares start trading on the floor, the bank would hope the price is low to enable strategic shareholder to buy at the lowest average price. Hence, it was understandable that Sacombank’s shares dipped last week while the overall trend of all industries was a rising market, albeit, not all bank scrip.
Share prices of other leading banks fell slightly: Asia Commercial Bank shares were offered at 15.5 million dong and Techcombank 11.5 million dong. But Eximbank shares got out of its previously moribund state and buy offers were made for up to eight times par but slipped to 7.6 million dong last weekend when no sellers were forthcoming. Military Bank shares sold for about 6.2 to 6.3 million dong last week.
Shares of plastics makers began to be trade more frequently after a sharp fall. Binh Minh Plastics buy offers were seven times par, Tan Tien Plastics four times par and Tien Phong Plastics at about three times par.
In addition, shares in the usually less attractive industry of construction materials saw a pick up trade. Thanh Thanh Enamelled Tiles and Chang Yil Enamelled Tiles were in great demand at over 2.3 times par. Some shares of garment makers also picked up following the news of the possibility that quotas on Vietnam’s garment and textile industry would be abolished.