 Brokerages: Bank stocks remain attractive this week
Saigon Times - 1/10/2017 8:38:12 AM
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Securities companies have forecast that bank stocks would continue attracting investors this week thanks to positive developments in the banking system.
Nguyen Hong Khanh, head of analysis at Sacombank Securities Company, was quoted by Dau tu Chung khoan newspaper as saying that the trading of bank stocks was sluggish last year but investors have recently paid attention to the banking sector as many banks are being restructured and improving operations. The Government has also shown its determination to restructure the banking system to back economic growth.
Bank stocks, which have dipped 20-30% against one year ago, are recovering at the moment.
In the first trading week of 2017, the VN-Index of the HCMC exchange climbed 1.83% at 679.8 points and the HNX-Index of the Hanoi bourse nudged up 2.31% at 82.09 points.
Liquidity stayed low on both bourses. The average matched volume stood at 94.1 million shares per session on the HCMC exchange, up 4% from the previous week, and rose slightly to 24.6 million shares per session on the Hanoi market.
Large caps, especially bank stocks, made strong gains last Tuesday, the first session of the holiday-shortened trading week. This enabled the index of the HCMC exchange to beat the 670-point resistance level.
The winning streak extended on investor caution in the next two sessions. Notably, many securities and steel stocks lured buyers who priced in the high possibility of strong fourth quarter earnings of these firms. In contrast, speculative stocks ATG, CDO, HID and DHM performed poorly last week.
Viet Capital Securities Company said in a report that the VN-Index capped the first week of the new year by advancing over 1.5%, the sixth straight session of gains.
Brewery SAB led the market higher last Friday with a 4.5% pickup, breaking out of a mini-slump amid foreign investors' strong buying. Meanwhile, CII leapt to a record high on high trading volume after it announced to sell half of its outstanding CII E&C shares and could book an estimated after-tax profit of VND180 billion in quarter four last year.
Financials ended the week with gains from BID, CTG and MBB. VCB, the country’s largest bank by market cap, jumped to a three-month high.
On the negative side, GAS dropped 1.8% after its 2016 profit forecast was adjusted down and HSG fell 4.5% on profit taking.
Foreign investors net bought VND245.1 billion worth of shares on the HCMC exchange last week. They acquired SAB with VND117.9 billion, mainly via put-through deals, in addition to VNM with VND88.9 billion, GTN with VND52.7 billion and KBC with VND41.6 billion.
They sold HBC with VND56.8 billion, DXG with VND22.1 billion and PGD with VND16.4 billion.
Foreigners also stayed on the buying side on the Hanoi market and their net purchases exceeded VND51.7 billion, chiefly VND18.8 billion of HUT, VND17.6 billion of PVS and VND3.8 billion of SHB. These investors offloaded NTP and IVS shares with a respective value of VND1.8 billion and VND1.2 billion.
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