Will bank stocks 'rise' again when some banks are allowed to loosen foreign room?

On the morning of January 9, the stock market opened the first trading session of the week in green. Contributing significantly to the increase of VN-Index were banking stocks when many codes increased simultaneously, especially those in the VN30 basket such as BID, CTG, HDB, MBB, STB, TCB, VCB, VIB , VPB...

Some banks will have their foreign room expanded.

Ngoc Thang

Banking stocks have had many positive trading sessions in the first week of 2023. Some investors are expecting the growth momentum of this industry's stocks to maintain and create momentum to lead the stock market this year. In particular, the State Bank is drafting a Decree amending and supplementing a number of articles of Decree No. 01/2014 dated January 3, 2014 of the Government on foreign investors buying shares of Vietnamese credit institutions, which will allow some banks to increase room to 49%, which is positive news for this industry's stocks.

Specifically, in special cases to implement the compulsory transfer plan, the Government decides that the total share ownership level of foreign investors at the credit institution receiving the compulsory transfer exceeds the prescribed limit but does not exceed 49% of the charter capital of the credit institution receiving the compulsory transfer.

The expansion of foreign room at banks is expected to help foreign investors continue to increase capital flows into banking stocks in particular and the stock market in general. Currently, on the stock exchange, many banks have exhausted their foreign room with a maximum rate of 30% such as Tienphongbank, ACB , MSB. In addition, some banks are also temporarily locking foreign room such as VPBank only opening room for foreign investors at 17.642%; Techcombank is 22.45%; VIB is 20.5%... This invisibly causes foreign investors who want to buy more shares of these banks to have to stay out (only when another foreign investor sells will the room be opened for other foreign shareholders to buy).

Source: https://thanhnien.vn/bank-stocks-are-replenished-when-mot-so-nha-bang-duoc-noi-room-ngoai-1851540336.htm