Ending the trading session at the end of August 2024, the VN-Index soared to 1,283.87 points, a significant increase of 32.36 points, or 2.6%, compared to the previous month. The banking sector was a key contributor to the market’s upward trajectory in the past month. According to VietstockFinance data, the banking sector index rose by 4.12% from the previous month, reaching 731 points.
Market capitalization of banks increased by more than VND 62 trillion
In August, the market capitalization of the banking group surged by over VND 62 trillion, approaching VND 2.1 quadrillion (as of August 30, 2024), representing an increase of more than 3% compared to the end of July.
Source: VietstockFinance
|
The improvement in the sector’s market capitalization was mainly driven by the performance of the three largest state-owned banks, whose share price increases led to a rise in their market capitalization. Specifically, VietinBank (CTG) witnessed a 10% increase in market capitalization from the previous month, while Vietcombank (VCB) and BIDV (BID) both recorded a 3% rise.
SSB stood out with a 14% increase in market capitalization, making it the bank with the highest growth in the sector during the month. This was attributed to a 339.3 million increase in the number of outstanding shares as of August 30, 2024, following the bank’s completion of a stock dividend payment for 2023 and bonus share issuance to shareholders, with a total ratio of nearly 14%.
Other banks, including Kienlongbank (KLB, +9%), Nam A Bank (NAB, +9%), LPBank (LPB, +8%), Sacombank (STB, +5%), and HDBank (HDB, +5%), also experienced increases in market capitalization in line with the rise in their share prices.
On the contrary, VAB witnessed the most significant decline in market capitalization among the banking group, falling by 6% to VND 4,860 billion, due to a decrease in its share price.
 Source: VietstockFinance
|
Decline in liquidity
The average daily trading volume of bank stocks in August stood at nearly 173 million shares, marking a 3% decrease from the previous month, equivalent to a reduction of nearly 6 million shares per day. Consequently, the average daily trading value also dropped by nearly 8%, settling at VND 3,729 billion.
 Source: VietstockFinance
|
The decline in sector-wide liquidity was predominantly driven by a decrease in the liquidity of several banks, including VCB (down 42%), BID (down 24%), BVB (down 59%), and PGB (down 53%).
However, some banks witnessed notable increases in their liquidity. For instance, BAB’s liquidity surged by 31 times to over 147,000 shares per day, while TCB, MSB, and CTG experienced increases of 73%, 55%, and 36%, respectively.
SHB reclaimed its top position in the sector in terms of liquidity, with more than 13 million shares traded via matching orders each day and nearly 7 million shares traded via negotiated deals, resulting in a total average daily trading volume of over 21 million shares, a slight decrease of 3% from the previous month.
PGB, on the other hand, had the lowest liquidity in the sector, with only 3,725 shares traded daily, representing a decrease of more than half compared to the previous month. Its daily trading value stood at just VND 60 million.
Source: VietstockFinance
|
Foreign investors resume net selling
Foreign investors resumed net selling of bank stocks after just one month of halting their selling streak. They sold more than 71 million bank shares, resulting in a net selling value of VND 420 billion.
Source: VietstockFinance
|
HDB was the second most net bought stock by foreign investors in August, with nearly 27 million shares (valued at VND 674 billion) being net bought. Conversely, foreign investors net sold VPB shares, offloading nearly 51 million shares, equivalent to a net selling value of VND 951 billion.
[Khang Di]
