The cash poured into bank stocks amid falling VN index and selling stocks in other business areas.
The stock market fell sharply in the first trading session of the week, with the VN index losing 33 points. Analysts say the declines would have been even steeper had bank stock prices not risen.
Despite heavy selling pressure in the market, bank stocks still attracted cash flow. Many bank stocks hit new all-time highs.
Vietcombank, for example, saw the price increase from 3,800 VND to 93,000 VND per share. In the first trading session of the week, the stock soared to 93,500 VND per share, officially breaking the record set in mid-2021.
Thus, the Vietcombank share price has risen by 18% since the beginning of the year. Meanwhile, the price of BIDV shares reached 48,500 VND per share, an increase of 30%.
VietinBank, MBBank, Techcombank and ACB also maintained an upward trend during the session amid the steep market decline.
Techcombank, the bank owned by billionaire Ho Hung Anh, has released its fourth quarter 2021 financial report which shows its pre-tax profit of VND23.2 trillion, or $1 billion, a 47% increase from 2020 His NIM is 5.6% higher. than the 4.9% of 2020.
Techcombank is the second bank to earn over $1 billion in profits in Vietnam. The first was Vietcombank in 2020.
Previously, bank stocks experienced a downturn in the second half of 2021, when bank stocks could not follow the upward market trend as investors believed that banks’ business performance would be poor due to Covid-19. and bad debts would increase. .
Contrary to investors’ expectations, the banking sector performed well with well-managed assets thanks to the strict credit control policy.
The World Bank has predicted that Vietnam’s economy will continue to recover in 2022 with a GDP growth rate of 5.5% and the country will return to the high growth rate from 2023. sharp increase after a period of stagnation .
GDP growth means bank credit growth, and commercial bank revenues and profits will improve.
Analysts believe that the VND 350 trillion economic stimulus package which has been approved by the National Assembly will have a positive impact on the banking sector.
In addition, SBV (State Bank of Vietnam) Directive No. 02 on Digital Transformation of Banking Industry Based on 4.0 Technology and Contactless Payment System will help banks better control capital flows and restricting the misuse of capital, thereby helping to reduce bad debts. .
Stock market boom, money flows into the pockets of bankers
Bank stocks continue to attract cash flow. The VN index reached new highs, surpassing the 1,500 point mark.