Bank listing to boost Vietnam stock market

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BIDV branchThe listing of the Bank for Investment and Development of Vietnam (BIDV), the nation’s second-largest lender by assets,is expected to boost liquidity on the country’s stock market. The bank will begin trading on the Ho Chi Minh Stock Exchange this week.

BIDV will list 2.81 billion shares on January 24 with an initial price of 18,700 dong ($0.89) each. The listing may help boost the size and liquidity of Vietnam’s $49 billion stock market, the best performer in Southeast Asia last year, Bloomberg said. The country is trying to mend a banking system burdened with the region’s highest level of bad debt, according to Fitch Ratings.

The benchmark VN Index rose 22 per cent in 2013 as inflation eased, the government purchased bad loans from banks and investors speculated policy makers will reduce restrictions on foreign investors.

So far, low trading volumes have discouraged some investors from buying Vietnam stocks. The daily average value of shares changing hands on the Ho Chi Minh exchange in the year through January 17 was about $52.2 million. That compares with about $15 billion on China’s Shanghai Stock Exchange.

BIDV sold a three per cent stake in an initial public offering December 2011 and had planned to begin trading June 2012. The plan was delayed after a slide in the VN Index.

The listing would raise the number of publicly-traded banks on the benchmark VN Index to six and to nine nationally. Vietnam lenders have the highest rate of bad debt among the six Southeast Asian countries covered by Fitch Ratings.

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Reading Time: 1 minute

The listing of the Bank for Investment and Development of Vietnam (BIDV), the nation’s second-largest lender by assets,is expected to boost liquidity on the country’s stock market. The bank will begin trading on the Ho Chi Minh Stock Exchange this week.

Reading Time: 1 minute

BIDV branchThe listing of the Bank for Investment and Development of Vietnam (BIDV), the nation’s second-largest lender by assets,is expected to boost liquidity on the country’s stock market. The bank will begin trading on the Ho Chi Minh Stock Exchange this week.

BIDV will list 2.81 billion shares on January 24 with an initial price of 18,700 dong ($0.89) each. The listing may help boost the size and liquidity of Vietnam’s $49 billion stock market, the best performer in Southeast Asia last year, Bloomberg said. The country is trying to mend a banking system burdened with the region’s highest level of bad debt, according to Fitch Ratings.

The benchmark VN Index rose 22 per cent in 2013 as inflation eased, the government purchased bad loans from banks and investors speculated policy makers will reduce restrictions on foreign investors.

So far, low trading volumes have discouraged some investors from buying Vietnam stocks. The daily average value of shares changing hands on the Ho Chi Minh exchange in the year through January 17 was about $52.2 million. That compares with about $15 billion on China’s Shanghai Stock Exchange.

BIDV sold a three per cent stake in an initial public offering December 2011 and had planned to begin trading June 2012. The plan was delayed after a slide in the VN Index.

The listing would raise the number of publicly-traded banks on the benchmark VN Index to six and to nine nationally. Vietnam lenders have the highest rate of bad debt among the six Southeast Asian countries covered by Fitch Ratings.

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