After experiencing a “painful” 2022, bank stocks had a prosperous first trading week of 2023.
In the first trading week of 2023 (January 3-6), banking stocks performed positively when recording 22/27 gainers.
In which, the strongest gainer was VietBank’s VBB, up 29.5% in the past week. Accordingly, the VBB market price returned above par value for the first time after nearly 4 months. VBB’s liquidity also improved compared to last week.
The next strongest gainers were NamABank’s NAB (up 10.7%) and LienVietPostBank’s LPB (up 10.3%). LPB caught attention in the session 6/1 when it hit the ceiling price with sudden liquidity, with a trading value of 670 billion dong, the highest since listing. LPB market price has returned to the end of April 2022 and has increased more than 73% compared to the bottom recorded in mid-November 2022.
Many other codes also increased by 7-8% such as VIB (8.4%), STB 98%), BID (7.9%), TCB (7.2%), TPB (6.9%).
STB has increased by nearly 60% since the bottom in November 2022 and the market price returned to the same area in September 2022. This stock has been the most net bought by foreign investors in the past 1 year, in which Dragon Capital fund group has continuously bought into STB and become a major shareholder of the bank. By the end of 2022, the number of shares owned by Dragon Capital in Sacombank has increased to more than 113 million units, equivalent to 6% of the bank’s shares.
On the other side, there were still some stocks that dropped in price last week such as VAB (-9.3%), SGB (-0.8%), OCB (-0.6%).
The liquidity of the whole industry improved significantly thanks to the session 6/1 with the trading value “exploding”, reaching more than 3,500 billion dong.
VPBank’s VPB stock was the most traded stock in the banking group last week with a matched value of more than VND2,000 billion last week. In addition, according to the agreement method, VPB also recorded that 300 billion dong was exchanged between investors. Notably, foreign investors net bought more than 6.5 million shares of VPB, worth more than 120 billion dong. This stock price also performed positively, up 5.9% in the past week.
Besides VPB and STB, foreign investors also net bought many other banking stocks such as CTG (more than 1.3 million shares), SHB (more than 1 million shares), VCB (more than 500,000 shares).
Before that, banking stocks experienced a “painful” 2022 when 25/27 stocks fell, of which a series of stocks “evaporated” 40-50%.
In the banking industry analysis report, experts of VNDirect Securities said that valuation at the lowest level in history (1.1 times P/B in 2023) is opening up a very attractive investment opportunity with banking stocks. In the current context, VNDirect prioritizes banks that have the ability to defend against fluctuations (good risk management and limited real estate lending. However, once the storm is over, we have priority banks with low valuations, solid capital buffers and a large proportion of real estate loans and corporate bonds in their credit portfolios. and banking is still the industry that benefits the most from Vietnam’s economic growth story in the long term.