The stock market witnessed a strong surge in bank stocks, contributing to the Vn-Index surpassing 1,250 points on February 28, reaching its highest peak in 18 months. The 1,250-point zone continued to be maintained until March 7. Confidence in the Vietnamese stock market is growing as many securities companies predict that the Vn-Index will continue to rise and reach the 1,400 – 1,500 point range in 2024.
This confidence was further reinforced on February 28, when the Prime Minister chaired a conference on implementing the stock market development mission in 2024. The conference was attended by various ministries, sectors, and leading banks and securities companies in the market to propose solutions to support economic recovery, the development of the stock market, and elevate Vietnam’s stock market to an emerging market. At the conference, the Prime Minister requested the early elevation of Vietnam’s stock market from a frontier market to an emerging market.
Stock market analysts also agree that the current Vietnamese stock market has many foundations for positive expectations, including positive spillover from the global stock market, expectations of looser monetary policies to support the economy, and the Government’s determination to upgrade the market or launch the KRX system.
Therefore, the overall picture shows many favorable conditions for the development of the stock market.
Turning back to the banking sector – one of the largest sectors in terms of market capitalization. In 2023, many banks planned to list on the Ho Chi Minh City Stock Exchange (HoSE) such as VietBank, ABBank, BVBank, Nam A Bank… but only one member, Nam A Commercial Bank (stock code NAB), was approved. On March 8, over 1 billion shares of NAB were officially listed on HoSE. Therefore, along with NAB, there are currently 18 banks listed on the largest stock exchange in Vietnam.
HoSE is the largest and most developed trading floor in Vietnam, and the listing of public companies in general and NAB in particular is a necessary step in the development process. It contributes significantly to increasing market capitalization and liquidity, providing attractiveness and potential opportunities for domestic and international investors. It also creates favorable conditions for attracting investment capital and expanding business operations, increasing value for shareholders, and ensuring sustainable development for the bank.
Customers transacting at Nam A Bank
In 2024, Nam A Bank sets a target for total assets of 232 trillion VND (260 trillion VND in 2025), mobilized capital of 178 trillion VND (202 trillion VND in 2025), and customer loans of 181 trillion VND. The estimated pre-tax profit for 2024 is 4,000 billion VND and 5,000 billion VND for 2025, with ROA and ROE ratios above 1.4% and at least 20% respectively. Regarding the capital increase plan, it is expected that by the end of 2024, the chartered capital will reach about 13,000 billion VND and the target for 2025 is about 16,200 billion VND.
With the current market price, NAB is considered attractive, besides positive business prospects and clear direction with transparent management. The banking industry welcomes new members to HoSE, which is a matter of concern for many investors, and all will be answered at the “HoSE Welcomes Newcomers, What Opportunities for Investors?” talk show, taking place on March 11 on the Fanpage Cafe F and Fanpage Nam A Bank.
The talk show will be attended by representatives from Nam A Bank, including Mr. Vo Hoang Hai – Deputy General Director; Expert – Mr. Tran Thang Long, Director of Analysis from BIDV Securities Company (BSC); and Mr. Nguyen Huu Phuong from DNSE Securities Company.
Stay tuned!
