Credit Suisse “dyes red” bank stocks, some domestic stocks “escape”

Credit Suisse “dyes red” bank stocks

Silicon Valley Bank was thought to be the biggest shock in the financial industry this week. But no, with its greater influence, when facing serious liquidity problems, Credit Suisse "dyed red" global banking stocks.

Specifically, in the last session of the week, Credit Suisse shares fell more than 9%.

Charles-Henry Monchau, chief investment officer at Syz Bank, said Credit Suisse needed to go further to restore investor confidence despite 11 banks pledging to inject money to “rescue” it.

Although Credit Suisse "painted red" global banking stocks, some domestic codes still "escaped" such as VPB, TPB, SHB ,... Illustrative photo

“However, these measures are not enough to completely get Credit Suisse out of trouble; it is about restoring market confidence through the complete removal of the investment bank, full guarantees for all SNB deposits and an equity injection to give Credit Suisse time to restructure.”

“Whether depositors are comfortable enough to stem the outflows in the coming days is a key question,” said Frédérique Carrier, head of investment strategy at RBC Wealth Management.

While markets were relieved by the Swiss National Bank’s intervention, sentiment is certainly still fragile, especially as investors are likely to worry about the eventual economic impact of the European Central Bank’s aggressive monetary tightening.”

Credit Suisse led bank stocks lower as worries persist. The banking sector fell 3.2% in late afternoon trading, leading the sector's losses as sentiment remained fragile at the end of a volatile week.

Credit Suisse was the worst performer in the Stoxx 600, with Santander down 5.5%. HSBC, which bailed out SVB UK earlier this week, fell 3.3%.

Some domestic codes "escape"

Domestic bank stocks were also “dyed red” by negative news from the world . However, there were still some codes that “escaped” successfully.

VPB shares of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) are the most notable code in the banking industry. Last week, VPB shareholders received important information.

According to Bloomberg, VPBank is in the final stages of negotiations to issue 15% of its capital to Sumitomo Mitsui Financial Group (SMFG). Accordingly, VPBank will issue about 1.19 billion additional shares, equivalent to 15% of its equity capital to SMFG. At a price of about VND32,000/share, VPBank will earn about VND38,000 billion (equivalent to USD1.6 billion).

Thanks to that, although bank stocks were in the red, VPBank still had growth momentum in a "stormy" trading week.

Closing the session on March 17, VPB reached 19,700 VND/share, up 1,400 VND/share, equivalent to 7.7%. Thanks to that, VPBank's market capitalization increased by 9,398 billion VND.

Meanwhile, TPB shares of Tien Phong Commercial Joint Stock Bank (TPBank) are supported by dividend information. Next week, the last registration date is March 21, the ex-right trading date is March 20. TPBank will pay dividends to shareholders on April 3.

Dividends helped TPB successfully “escape” along with VPB. At the end of the week, TPB reached VND25,300/share, up VND1,300/share, equivalent to 5.4% after 1 week of trading. TPB helped TPBank’s market capitalization gain an additional VND2,056 billion.

Despite not much important supporting information, SHB shares of Saigon - Hanoi Commercial Joint Stock Bank still maintained their green color after a volatile week. SHB closed the week at VND10,250/share after increasing by VND150/share, equivalent to 1.5%. SHB's market capitalization increased by VND461 billion.

These are just a few rare codes that “weathered the storm”. The rest, most other bank stocks ended the week in red.

VCB of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) closed the week at VND89,000/share, down VND3,100/share, equivalent to 3.4%. However, VCB is still the bank stock with the highest market price and the stock with the largest market capitalization on the Vietnamese stock exchange.

Source: https://www.congluan.vn/credit-suisse-nhuom-do-co-phieu-ngan-hang-mot-vai-ma-trong-nuoc-thoat-hiem-post239709.html