Investors at ACB Securities Co. (Source: VNA)
 
Hanoi (VNA) - Shares ended June 19 on a positive note as banks reacted to information that the new bad debt settlement resolution will likely be approved by the National Assembly this week.

The VN-Index on the HCM Stock Exchange increased 0.73 percent to close at 766.83 points. The benchmark southern index expanded 1.5 percent last week.

On the Hanoi Stock Exchange, the HNX-Index gained 1.12 percent to end at 99.41 points. The northern market index rose 1 percent a week ago.

Bank stocks were the major contributor to the market rise as all nine listed lenders on the two exchanges gained value.

Nam Viet Bank (NVB), the smallest capitalised bank among nine listed banks, hit the maximum daily rise of 10 percent for a second session on the Hanoi Stock Exchange, closing at 10,300 VND a share. These shares have climbed 110 percent since early this year.

Other banks such as Sai Gon-Hanoi Bank (SHB), Military Bank (MBB) and Sacombank (STB) increased 4.1 percent, 2.7 percent and 1.8 percent, respectively. These shares have also increased substantially since the beginning of 2017.

Sai Gon-Hanoi Bank has gained 64 percent compared to December 30 last year; Sacombank, up 50 percent; and Military Bank up 48 percent.

Three biggest listed banks including Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) rose by a more modest 0.5-1.5 percent each.

According to Bao Viet Securities Co, the National Assembly will likely approve the new bad debt settlement resolution this Wednesday. Only one issue remains unresolved surrounding the time frame, on which there are currently two perspectives. One is dealing with non performing loans (NPLs) ending December 31, 2016 and the other is applied to bad debts arising before 2016 as well as during the period in which the bad debt settlement resolution takes effect.

“With the high possibility that the resolution of bad debt will be approved, we think that the banking stocks may continue to gain momentum in the next two sessions. As a result, the overall performance of the indices will likely also receive substantial support,” Tran Hai Yen, a stock analyst at Bao Viet Securities Co, wrote in a report on June 19.

Apart from banks, many other large-cap stocks picked up and contributed to the market rise, including Vinamilk (VNM), brewery Sabeco (SAB), Petrolimex (PLX), VinGroup (VIC), Saigon Securities Inc (SSI) and PV Gas (GAS).

“From our view, the overall market outlook is positive in the short-term,” Yen said, but warned about rising profit-taking pressure on large-cap stocks lacking supportive information.

Liquidity was positive with a total of 265.3 million shares worth a combined 5.1 trillion VND (224.1 million USD) traded on the two markets.-VNA