Banks rally as property stocks plunge

The flurry of activity came hot on the heels of local media reports that Saigon-Hanoi Bank (SHB) had won approval from the regulators to acquire Habubank (HBB) yesterday (Tuesday) morning. The news had investors pushing strongly to buy SHB, while HBB’s shareholders trying to sell-out their holds.

But HBB immediately released press release quashing the rumours.

At the close, SHB was up by a strong 5.05 per cent to end at VND10,400. HBB, meanwhile, returned to its opening price, after tumbling during the session.

However, a number of investors also increased their purchases of HBB shares. The matching volume of HBB shares hit 25 million units, while that for SHB stocks reaching 4.4 million units.

The excitement infected other banking stocks, with investors rushing to bid for stocks in the sector. Major banks like Vietcombank (VCB), Eximbank (EIB), Vietinbank (CTG) and Military Bank (MBB) all ended up on the Ho Chi Minh Stock Exchange (HoSE). MBB outperformed the market with 5 million shares matched.

Sacombank (STB), likely to be acquired by Eximbank, also rallied strongly in this session. The stock hit the ceiling with strong bidding power, ending at VND21,300. Matching volume for the stock was 2.5 million units.

Pillar stock Bao Viet Holdings (BVH) was also up strongly in morning trading. The stock hit the ceiling throughout the session. But other pillar stocks Vincom Corp. (VIC) and Masan Group (MSN) shed value.

HoSE’s VN-Index advanced 1.37 points or 0.32 per cent to close at 429.39 points. VN30 also gained 3.77 points or 0.78 per cent to 486.42 points. Advancers outran decliners 158 to 97 on the southern bourse.

Meanwhile, real-estate stocks plunged this morning. Many liquid stocks in this sector hit the floor, among them Song Da Urban & Industrial Zone Investment and Development (SJS), Ho Chi Minh City Infrastructure Investment (CII), Khang Dien House Trading and Investment (KDH), Kinhbac City Development Share Holding Corp. (KBC).

Overall liquidity was also down. HoSE’s trading volume stayed at 63 million shares worth VND917.5 billion ($44.3 million).

In other market news, the HNX-Index rose 1.28 points or 1.85 per cent to 70.54 points, thanks to the massive rebound of major stocks. Some 205 stocks ended higher, with only 83 down and 51 unchanged.

Liquidity significantly improved to 80 million shares worth VND663.7 billion ($32.1 million).