Attractive Stocks of Securities Companies and Banks

The VN-Index increased by 12.87 points (or 2.9 per cent), reaching 456.06 points compared with the closing VN-Index a week ago.

 

Total value of transactions during the week was put at VND 471.610 billion. In comparison with one week ago, total volume of transactions increased by around 13.66 per cent with the average number of matching orders of 1,927,780 stocks per session.

During the week, 27 stocks had their prices rise while seven saw their prices fall. The volume of fund certificates VF1 increased (by around 32.95 per cent) with the average number of 349,876 certificates per session. The price of certificates was on the rise, 9.36 per cent, reaching VND 22,200.

 

Date	March 20	March 21	March 22	March 23	March 24
Per cent of VN-Index change	2.32	2.03	-0.72	0.01	-0.73
Per cent of the volume of matching orders	22.53	-0.03	15.61	-20.20	-13.39
Number of stocks seeing prices up/Number of stocks seeing prices down	33/1	28/3	10/16	7/20	5/27

 

Figures of transactions in the stock market show changes of groups of various stocks. The group of main stocks which are strongly supported, such as REE, GMD, VNM, SAM, KDC and NKD) saw signs of a fall in prices and the volume of matching orders. The second group of stocks, including BBC, BBT, BPC, MHC, HTV, DPC, HAS and TYA, after having their prices on the rise, over four per cent per session, in the first two sessions of the week began to fall. The increase in prices of these stocks created a momentum and a standard for price comparison for stocks which have not been listed in the stock market yet but have similar production situation in the over-the-counter (OTC) market.

 

After one month of the Saigon Securities Incorporation’s (SSI) issuing stocks for increasing capital, the bidding price of a SSI stock increased by VND 300,000 (around 60 per cent), or five times higher than its face value. In particular, the number of investors seeking to buy SSI stocks has increased sharply. It is reported that apart from good business activities of securities companies when the market expands, the increase of lists of stocks in the OTC market, which are held by SSI has become attractive to investors.

 

Stocks of the Bao Viet Securities Company (BVSC) saw a high increase. In Ho Chi Minh City, stocks of BVSC were priced at VND 300,000 in some cases, but some odd lots were priced at VND 250,000 per stock. The price is considered to be much higher than six months ago, when stocks were demanded to be sold at VND 200,000 per share but few people were interested.

According to some investors, what has made enterprises’ stocks attractive is their healthy financial status. The Refrigeration Electrical Engineering Corporation (REE) is one such example as its stocks have drawn much attention despite its P/E ratio (price/earnings) is just 20 fold, less attractive than the average ratio of between 13 and 15 fold of listed stocks. In fact, the P/E ratio does not reflect exactly REE’s successful investment in Sacombank.

 

Van Anh