Waiting for the waves coming from banking stocks

In the last trading session of the week, the active demand helped VN-Index rebound immediately after breaking through the 1,170 point mark, but it was not enough to help the index maintain its green color. VN-Index decreased slightly by 0.47 points (-0.04%) to 1,172.55 points.

The positive point of the market is the active liquidity with a total value exceeding 20,000 billion VND. This shows that investors are increasing their buying in the hope of closing profits in time to celebrate Lunar New Year or start a new year.

Despite participating in a strong race to buy real estate stocks PDR and NVL along with the general market, foreign investors still net sold nearly 280 billion VND in the last session of the week on February 2. On the HOSE exchange, foreign investors bought 57.07 million units, with a total value of 1,490.03 billion VND. On the other hand, this group sold 67.15 million units, with a value of 1,698.44 billion VND. On the HNX exchange, foreign investors bought 1.28 million units, with a value of 36.3 billion VND. On the other hand, this group sold 4.65 million units, with a selling value of 98.45 billion VND.

In terms of industry groups, although VCB has recovered, the widespread red color has caused banking stocks to not escape correction. Besides the above codes, other stocks such as SHB, CTG, BID, MBB all slightly corrected by around 1%.

Commenting on the adjustment of banking stocks, some experts said that banking stocks in 2023 will face many difficulties and challenges. However, the Government's recent solutions to remove difficulties for the real estate sector and unblock capital flows for the economy will bring positive results, helping to reduce pressure on the banking system. In the context of the current general decline in the stock market, the banking sector is still rated higher than other sectors.

To date, 28 banks have announced their 2023 business results. Accordingly, a total of 12 banks had negative profit growth (of which 1 bank lost money) and 16 banks recorded positive profit growth. The poor results in 2023 create a low comparison base for growth in 2024. Therefore, bank profit growth in 2024 will be quite positive. However, the picture of bank profits will be strongly differentiated, the group of banks with high bad debt coverage ratios and good asset quality will continue to maintain their performance, while some small banks will continue to slow down, even with negative growth.

Dr. Nguyen Duy Phuong - Investment Director of DG Capital commented that for long-term investment, the group of stocks that can be considered is the banking sector with good asset quality and maintaining a growth rate that is superior to other sectors. The market price of bank stocks is currently undervalued in 2023, but looking towards 2024, the growth potential of bank stocks will recover strongly when the business environment becomes more favorable. In addition, banks with outstanding stories such as strong, comprehensive transformation or selling capital to foreign investors should also be paid attention to.

Source