Market wrap: The VN-Index on Tuesday gained back almost all of yesterday's losses, advancing one percent as financial sector stocks soared 4.0%. Bank stocks surged today after the Prime Minister told international media that the government may raise FOL for banks this year. The news sparked an across-the-board rally, including VCB (+4.3%), CTG (+7.0%), BID (+6.3%), MBB (+3.7%), STB (+3.1%) and Hanoi-traded ACB (+5.5%). For further analysis of the PM's remarks, see our note above.
Vietnam banks to fully comply to Basel II in 2020. The State Bank of Vietnam (SBV) on December 30, 2016 issued Circular 41/2016 stipulating the capital adequacy ratio for banks and foreign bank branches. Circular 41 changes the CAR requirement and the calculation of CAR ratio. The minimum CAR will be 8% instead of 9% currently and the calculation method for CAR closely follows Basel II.
The VN-Index fell slightly on Friday amid modest trading volume as a three-week rally petered out mid-week just shy of a nine-year high.Energy names such as GAS (-1.5%) and PVD (-1.4%) helped lead the market lower as a two-day rally in global crude prices stalled in Asian trading today.
The VN-Index was little changed on Thursday, slipping lower by less than a tenth of a percent amid less than average trading volume. Fertilizers tickers, such as DPM (+6.3%), DCM (+2.3%) and Hanoi-traded LAS (+9.5%) saw strong gains after the MOIT proposed to classify fertilizer makers as a category eligible for input VAT deductions. Local urea prices are also starting to catch up with a global urea rally and could see further increases in Q1.
The financial sector resumed its January hot streak, surging more than two percent on Wednesday to push the VN-Index up almost one percent. After slumping the last three months of 2016, the index has jumped 3.4% so far this month to just shy of its highest level since January 2008. CTG (+4.7%) soared to a five-month high and is up 18% this month on the back of strong 2016 earning results announced earlier this week. BID (+3.1%), up 15% in January,
The VN-Index bobbed around break even on Tuesday amid low volatility and lower-than-average trading volume before closing with a small loss, the market's first down day of the new year. A sharp drop in Brent crude oil prices overnight weighed on local energy names, such as GAS (-0.8%) and PVD (-1.4%). Meanwhile, profit takers stepped in to sell stocks in the financial sector (-0.7%) after, as we previously reported, strong earnings reports and expectations of FOL increases helped fuel
CTG: announces encouraging results for 2016. CTG today announced some headline numbers of consolidated 2016 results. Credit growth was 18% and total credit outstanding reached VND720 trillion (USD32 billion). Deposit growth outperformed credit growth at 21%, amounting to VND862 trillion (USD38 billion). The bank has continued to push retail lending in 2016, with high retail loan growth of 35%.
Stocks stay on a roll, led by SAB, banks. It's been a green 2017 so far as the VN-Index capped the first week of the new year by advancing more than a half a percent for its sixth straight session of gains.
The VN-Index kept its 2017 winning streak alive, inching up for a small gain amid back-and-forth trading in modest liquidity. The financial sector (+0.4%) once again dominated the top contributors as yesterday's laggards VCB and STB joined BVH and CTG to pull the market higher, offsetting losses by EIB, BID and MBB.
The VN-Index extended its gains for the new year, adding less than half a percent on Wednesday. Brent crude prices advanced in Asian trading today, helping to boost energy names, such as GAS (+2.3%) and PVD (+3.0%). The financial sector jumped almost one percent as gains by GTG, BID, BVH and EIB outweighed losses by VCB and MBB. STB (-6.7%) plunged after local media reported the SBV plans to focus on restructuring it along with four other weak banks in 2017.