Large bank shares attracting attention of investors

Recently, much attention has been given to mergers and acquisitions between Eximbank (EIB) and Sacombank (STB), Saigon Hanoi Commercial Bank (SHB) and Habubank (HBB).

Also, shares of such large banks as Vietcombank (VCB) and Vietinbank (CTG) have drawn a great deal of attention from investors partly because their prices could be the basis for predicting price of BIDV’s shares that are expected to be listed on the stock exchange this June.

STB shares have been enjoying encouraging performance with price hovering around 25,000 dong/share both before and after the general shareholders’ meeting in late May. Likewise, EIB’s share price is ranging from 17,500 dong to 18,000 dong per share.

In the meantime, SHB share price has steeply fallen from above 10,000 dong/share to below 9,000 dong/share following the general shareholders’ meeting in early May. However, the recent days have seen slight recovery and the price is picking up to 9,500 dong/share. Similarly, HBB share price has plunged from some 6,600 dong/share to below 5,000 dong/share.

In all likelihood, it would take time for the two above banks to get the merge finalised. The merged bank is expected to own nearly 9 trillion dong charter capital, 100 trillion dong assets, 500,000 clients, 5,000 employees and several affiliates such as securities companies and bank asset management companies.

Another couple of shares alluring to investors are CTG (Vietinbank) and VCB (Vietcombank) particularly when BIDV conducted their first public offering in late 2011. They have again drawn much general attention as BIDV’s shares is about to be listed in the near future.

Apparently, CTG share price is on the downward trend, falling from 23,000 dong/share in early May to merely 20,000 dong/share. This share has gained increasing popularity in the wake of Vietinbank’s issuance of international bonds in this May.

Similarly, VCB has seen its share price dropping from the peak of 36,000 dong/ share to 30,000 dong/share. Like Vietinbank, this lender is of intention to bring international bonds onto the market in the time to come.

According to Nguyen Phuoc Thanh, general director of Vietcombank, foreign currency mobilisation has been adversely hit by low ceiling mobilisation rate over the recent times while demand for foreign currency appears yet to ease.

 

Category: Stocks