MSB shares hit record high in the first session of the Year of the Dragon

More than 35.3 million MSB shares were successfully matched in the first trading session of the lunar new year, of which nearly 9.8 million shares were traded at the ceiling price of VND15,050.

Shares of Vietnam Maritime Commercial Joint Stock Bank (stock code: MSB) opened the first trading session of the Year of the Dragon in a state of excitement. The market price quickly increased to the maximum range of 15,050 VND when opening, then gradually narrowed the increase to near the reference price before the lunch break. In the afternoon session, strong demand helped MSB return to the ceiling price and remained there until the end of the session.

MSB closed with no sellers, while there were more than 430,000 shares left to buy. Today, this stock ranked third on the Ho Chi Minh City Stock Exchange in terms of matched volume. This stock recorded a trading volume of 35.34 million shares for the entire session, 5 times higher than the previous session, and broke the record set more than 3 years ago. The highest matched volume ever recorded for MSB shares was 30.43 million units in the first trading session on the Ho Chi Minh City Stock Exchange on December 23, 2020.

MSB stock trading value today reached over 524 billion VND. MSB is the only bank stock that hit the ceiling in today's session. With 4 consecutive sessions of increase, the bank's market capitalization is now over 30,100 billion VND.

MSB's growth streak began shortly after the bank announced its 2023 business results with some positive signals about profits and asset quality. Specifically, the bank's total assets reached more than VND 267,000 billion, up 25% compared to 2022. Credit growth reached 22.43%, among the highest in the industry, with a diversified credit portfolio, focusing on core sectors of the economy , thereby minimizing risks and increasing capital efficiency. MSB's total operating income in 2023 reached approximately VND 12,300 billion last year, up 15% over the previous year. Pre-tax profit for the whole year reached VND 5,830 billion.

MSB stock price and liquidity chart.

Besides MSB, some other stocks of the banking group also had an exciting state in the first trading session of the year Giap Thien. Typically, OCB increased by 5.3%, to 15,900 VND, KLB increased by 3.3% to 12,400 VND, TCB increased by 2.9% to 38,400 VND, MBB increased by 2.8% to 24,150 VND. However, the pillar stocks of this group moved in the opposite direction to the general trend. Specifically, VCB shares of Vietcombank - the listed company with the largest capitalization in the market today - decreased slightly by 0.1% compared to the reference, down to 89,900 VND. CTG shares of VietinBank reversed sharply after a series of hot increases before Tet, losing 1.4% compared to the reference and closing the session at 35,000 VND. ACB shares recorded the sharpest decrease in the banking group, losing 2.9% to VND27,200.

Before today's trading session, most analysts from securities companies believed that bank stocks would attract strong cash flows, thereby continuing to play a pivotal role in supporting the market's growth. This group of stocks has just experienced a wave of about 10% increase in the first month of 2024, but this figure is still relatively modest compared to the 2020-2022 period.

According to Mr. Michael Kokalari - Director of Macroeconomic Analysis and Market Research at VinaCapital, stocks in this sector will benefit from profit growth, from about 7% in 2023 to 18% in 2024 and the valuation of stocks in the sector in Vietnam is currently lower than the 5-year average. VinaCapital expects that banks' profits will be boosted by credit growth in 2024 and will not only be lending to real estate investors, but also to new home buyers, in line with expectations of a recovery in the real estate market this year.

Source