Why are king stocks back on track after a 2-week setback?

Despite the recent surge in bank stocks since December 2023, Mr. Tran Truong Manh Hieu believes that disbursing funds during this period would be quite risky, especially before the Lunar New Year.


At the end of the trading session on February 5, 2024, VN-Index increased by 13.51 points (1.15%), reaching 1,186.06 points. Out of which, 8 out of 10 banking stocks contributed to the index increase (CTG, BID, MBB, ACB, TCB, VPB, VIB, and TPB).

Top 10 stocks impacting VN-Index on February 5, 2024

To recap, in the past two weeks, after a continuous increase, the banking stock group started to lose momentum but bounced back in the trading session on February 5.

Banking stocks drag down VN-Index for two consecutive weeks

Regarding the significant increase of banking stocks on February 5, Mr. Tran Truong Manh Hieu – Head of Strategy Analysis Department at KIS Vietnam Securities Company, suggested that it might be due to some capital flows from investment funds, but there is no data to confirm.

Usually, before Tet holiday, the market is not active, and liquidity is low. Therefore, just a capital flow can push the sector up.

“I think this morning there was a capital flow into the banking stock group, thereby creating positive sentiment for investors,” Mr. Hieu predicted.

However, at present, banking stocks have increased significantly compared to the period of December 2023. Mr. Hieu believes that if disbursement is made during this period, it will be quite risky, especially before the Lunar New Year. If disbursement is made before Tet, there is a possibility that some negative information will affect this group of stocks.

On February 5, CTG stock reached its ceiling price at VND 33,900/share, while BID increased by 3.73% to VND 48,650/share; MBB increased by 5.52% to VND 22,950/share, ACB increased by 5.9% to VND 27,800/share, etc.

VCB stock was the only banking stock that decreased by 0.33% in that session, to VND 90,000/share.

In addition, in the trading session on February 5, many banking stocks increased by 4-5%, even CTG stock reached its ceiling price. If disbursement is made at this time, the risk is extremely high.

According to observations, usually after a sharp increase of a major stock group in a session, the next session will stabilize, so the risk is very high. If investors want to participate in the banking stock group, they have to wait for 1-2 sessions, even after Tet, and wait for other stories.

Price movement of banking stocks on February 5

Stock movement of banking sector from the beginning of 2024 until now

Source: VietstockFinance

Han Dong