VN stock market hits record, big names rise
The Vietnamese stock market in the first half (H1) of 2021 broke many records.
According to the Ho Chi Minh City Stock Exchange (HOSE)’s report, along with the strong increase of the VN-Index in H1, the exchange’s capitalization value has gained about $17 billion this year.
HOSE has 28 companies with capitalization value of more than $1 billion, including four with capitalization value of over $10 billion, including: Vingroup (VIC), Vietcombank (VCB), VinHomes (VHM) and Hoa Phat Group (HPG). The Bank for Foreign Trade of Vietnam or Vietcombank has the largest market capitalization with over VND420 trillion (around $18 billion).
After three years, the capitalization value of VinHomes has surpassed that of its the parent group Vingroup (VIC), with nearly VND400 trillion dong. Meanwhile, the capitalization value of the Vietnam Technological and Commercial Joint Stock Bank or Techcombank has surpassed that of two giant banks - the Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade or Vietinbank. Techcombank's capitalization value has recently exceeded VND200 trillion for the first time.
Other big names on HOSE, which rank behind the top four, include: VietinBank, BIDV, the Vietnam Dairy Products Joint Stock Company (Vinamilk), Techcombank, Novaland Group, PetroVietnam Gas Joint Stock Corporation (PV GAS), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), Masan Group, Military Commercial Joint Stock Bank (MBBank), Saigon Alcohol Beer and Beverage Joint Stock Corporation (Sabeco), FPT Group, Mobile World (MWG), Vincom Retail (VRE), Vietnam National Petroleum Group (Petrolimex) (PLX), VietJet Air (VJC), Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) (HDB), Phat Dat Corporation (PDR), Bao Viet Holdings (BVH), Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam Export Import Commercial Joint Stock Bank (Eximbank), Saigon Securities Incorporation (SSI), PetroVietnam Power Corporation (POW) and Khang Dien House (KDH).
Vietcombank has passed Vingroup to rank first in terms of market capitalization since June 18.
Meanwhile, the Vietnam Dairy Products Joint Stock Company (Vinamilk) has been losing its position in terms of capitalization value. In H1, the price of Vinamilk shares decreased slightly and its market capitalization dropped to 8th place with more than VND187 trillion.
Vinamilk was the largest company on HOSE in September 2015 after surpassing Vietcombank. In the past three years, Vinamilk no longer retained its position, while Vietcombank and Vingroup made breakthroughs.
The Hoa Phat Group of billionaire Tran Dinh Long has also recorded great moves thanks to the strong increase in stock prices due to the rise of steel prices. Meanwhile, PV Gas has benefited greatly from the news that oil prices will increase beyond expectations.
VN-Index rises by nearly 28%
As of the end of June, HOSE had recorded listing capitalization of about $226 billion, an increase of nearly 30% compared to early 2021 and equivalent to about 84% of GDP in 2020.
The VN Index reached 1408.55 points at the end of June, a rise of 27.6% compared to the end of 2020 and an increase of 6.05% compared to May.
The VNAllshare index hit 1423.95 points, up 37.92% compared to the end of 2020. The VN30 index - measuring 30 largest stocks on the stock exchange - reached 1,529 points, up 3.68% compared to the end of May 2021 and up 42.79% compared to the end of 2020.
Industry indexes that recorded high growth in June included: real estate (VNREAL) up 9.03%, utilities (VNUTI) up 8.56%, and consumer goods (VNCOND) up 6.3%.
As of June 30, 2021, HOSE had 488 securities codes, including: 385 stocks, two closed-end fund certificates, seven ETF certificates, 65 covered warrants and 29 listed bonds. The total volume of listed shares reached more than 103.88 billion.
The breakthrough of banking stocks
Within a short period of time, two more banks passed Vinamilk in terms of capitalization. The prices for BIDV and Techcombank stocks increased sharply in the last sessions of June and thus their capitalization surpassed Vinamilk to climb to the 6th and 7th positions.
The price for Techcombank stock doubled in H1 thanks to its strong profit growth, which is estimated by Viet Dragon Securities Corporation (VDSC) to be over VND11 trillion in H1, up 65% year on year.
In the market, many banks are forecast to record strong profit growth in the second quarter such as VPBank (VPB), MaritimeBank (MSB)...
According to SSI Research, the pre-tax profit of VPBank could be as high as VND3.5 to VND4 trillion, up 66-90% year on year.
The liquidity of the stock market in June continued to increase with the average trading value and volume of over VND23,680 billion (over $1 billion) and 735.16 million shares, respectively, up by 7.94% in value and 4.73% in volume over the previous month.
The total value and trading volume of shares in the month reached over VND520,953 billion ($22.4 billion) and VND16.17 billion, respectively, up 18.74% in total value and $15.2 billion of total volume over the previous month, respectively.
In the first half of 2021, the average trading value/session was over VND19,639 billion and an average trading volume of 704.06 million shares/session, equivalent to an increase of 198.44% in value and 106% in volume compared to the liquidity of over VND6.2 trillion/session and the average trading volume of 334 million shares/session in 2020.
In the trading session on June 4, 2021, liquidity set a record with a transaction value of over VND30,728 billion.
In H1/2021, the total trading value reached over $95 billion and the total trading volume hit over 82.62 billion shares, equivalent to an increase of 282.39% in total value and 139.71% in total volume over the same period of 2020.
The share of Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) – VPB - was the most actively traded on the stock exchange in June with over 721 million shares, equivalent to a value of more than VND50 trillion.
The next positions belonged to Hoa Phat Group with VND33.6 trillion, Military Commercial Joint Stock Bank (MBBank) - MBB with over VND22 trillion, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) - TCB with VND21.72 trillion and Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) - STB – with VND21 trillion.
Vietnam’s stock market in June 2021
The Vietnamese stock market continued to attract retail investors in June with 140,470 new accounts opened during the month, according to the Vietnam Securities Depository Centre (VSD). This is the fourth consecutive month that the figure is above the 100,000 threshold.
The large majority (140,054) of these new accounts were opened by domestic individual investors. The number of new accounts opened by domestic institutional investors also increased for the third consecutive month, reaching 139 new accounts.
In H1/2921, there were 620,683 newly opened securities accounts, higher than the total number of newly opened accounts in 2020 and 2019. In 2020, the number of newly opened accounts was 393,659.
In June, the total transaction value of foreign investors reached over VND 79,321 billion, accounting for 7.46% of the total trading value. Foreign investors made a net sale of more than VND4,198 billion, down 63.37% compared to the previous month. Thus, in H1 of 2021, foreign investors sold more than VND29,875 billion on HOSE.
Stocks of technology companies are selling very well in the Vietnamese stock market.
The stock market has been witnessing unprecedented cash inflow so far this year, even though the Covid-19 pandemic has become more complicated in Southeast Asia.