Bank listing to boost Vietnam stock market

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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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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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