Fifth of listed stocks at historical peaks

By Minh Son   January 13, 2021 | 01:00 am PT
Fifth of listed stocks at historical peaks
A man climbs on steel packages at Hoa Phat steel mill in Hai Duong Province, Vietnam. Photo by Reuters/Kham.
The stock market's eight consecutive sessions of gains recently have pushed the prices of 20 percent of all stocks to all-time highs.

Just since the start of this year, 82 out of more than 480 stocks on the Ho Chi Minh Stock Exchange (HoSE) are at their highest levels since listing.

These are generally stocks with the highest capitalization in each industry, and account for 30 percent of the bourse’s total market cap, data firm FiinGroup said in its latest report.

Banks have been the best performers with eight stocks, accounting for 12 percent of total market cap, in this list.

Vietcombank peaked at VND107,000 ($4.67) on January 7, making the lender worth $17 billion, the highest valuation in the sector.

In the real estate sector, Vinhomes rose to its all-time high of VND103,400 on Tuesday, a 34 percent jump in the last three months thanks to high profits forecast for the last quarter of 2020 and stabilizing property prices. Its market capitalization of $15 billion is the third highest in the market behind only Vietcombank and its own parent, conglomerate Vingroup.

In commodities and information technology, two blue chips, steelmaker Hoa Phat Group and services giant FPT, also rose to new highs in January of VND44,900 and VND65,800.

FiinGroup said HPG would benefit in 2021 from the recovering property market and revival in infrastructure construction, and FPT from the ongoing digital transformation of the country.

Eleven construction and construction materials stocks surpassed historic peaks, but they were mainly small caps, like Binh Duong Trade and Development, Tien Giang Investment and Construction, Kien Giang Investment and Construction, and Tracodi.

FiinGroup also said it is among the six sectors with the lowest average price increase in the last three months, gaining only 18.33 percent compared to the VN-Index’s 28.23 percent.

The sector is currently trading at fairly low valuations, with a price-earnings (P/E) ratio of 14.95 as of January 11, the same as at the end of 2019.

The VN-Index had a P/E of 16.03 as of December 28, according to SSI Securities Corporation.

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