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The banking sector has been leading the VN-Index’s gain of nearly 23 percent this year, with some tickers achieving high growth, like VPB of VPBank, (nearly 130 percent), TCB of Techcombank (86 percent) and STB of Ho Chi Minh City-based lender Sacombank (81 percent).
However, investors have been selling of large chunks of banking stocks this month, leading to a loss of value.
VPB and TCB have lost seven percent from its peak, while STB has lost nearly 13 percent.
"Banking stocks are no longer attractive, given their profit prospects for this year," said financial data provider FiinGroup.
It has been estimated that banks will see their combined post-tax profit rise nearly 24 percent this year. This growth has been reflected by the 34 percent increase in their stock prices since the beginning of the year.
Unlike FiinGroup, some brokerages anticipate higher growth for the industry this year.
The BIDV Securities Company forecast at the end of last month that some banking stocks including VPB, TCB, ACB of Asia Commercial Bank and MBB of Military Bank will post growth of 10-40 percent in the remaining months of the year.
The brokerage anticipates a combined pre-tax profit growth of 34 percent over last year.
