Most of the unlisted bank stocks in Vietnam have
ridden the back of the recent rallies on the formal stock exchanges in
Ho Chi Minh City and Hanoi to record sizeable gains in their share
prices.
Rising from a common share price of VND12,000 early
this month, Eximbank stood at VND15,000 last week while Military Bank
was even higher at VND15,500.


Other unlisted banks also moved up amid bouts of heavy buying.


Housing Development Bank rose from VND10,000 early
this month to VND13,000 last week, Techcombank increased from
VND22,000-24,000 and Vietcombank advanced from VND31,000-34,000.


The two listed banks, Sacombank and the Asia Commercial Bank (ACB), have done well of late, spurring interest in their OTC (over-the-counter) brethren.


Sacombank is listed on the Ho Chi Minh Stock Exchange,
where it has been the most actively traded stock by volume since the
market rebounded, while the ACB is listed on the Hanoi bourse.


Brokers told Thanh Nien Daily that Eximbank and
Military Bank were their top two picks on the OTC market for unlisted
stocks, which usually trade in such hallowed institutions as coffee
shops and restaurants.


Trung, an independent broker based in HCMC, said most
trading of unlisted bank shares was being done by speculators out to
make a quick profit while the going was good.


Unlike banking stocks, the rest of the OTC market has yet to budge and seems stuck in a kind of limbo.


In fact, there have been next to no transactions of
shares in Bao Viet, Vietnam’s biggest insurer, or the leading beverage
producer Sabeco.


Even Vietinbank, the second largest lender by market capitalization, has missed out entirely on the action of its brother banks.


Just as marked is the absence of interest in unlisted
brokerages, of which there are more than a hundred nationwide, so the
OTC market is fairly flooded with their shares.


“We haven’t seen any transactions of unlisted
brokerages’ shares for more than six months,” said Nhien, another
independent broker.


In a bid to boost the OTC market, the Sacombank, DongA and ACB securities firms and other brokers have resumed margin lending, but to no avail so far.


Analysts reckon heavy buying in the OTC market will have to wait until the formal stock market makes a full recovery.


There certainly is a growing number of unlisted stocks to trade on the OTC market.


According to the government’s schedule, 948 out of
more than 1,500 state-owned companies are meant to be equitized (go
partly public) from 2008 to 2010.