What’s going on?

• Affecting the VN-Index and VN30, Techcombank (TCB) became a powerful stock, orienting the flow of banking stocks and the whole market. From the beginning of October 2020, TCB has been traded in large volumes, matching up to tens of millions of units/day. 
• All securities companies offer a maximum margin trading limit of 50% for TCB.

What’s behind it?

Spectacular start

• Techcombank listed on the stock exchange in June 2018 and closed the first session at VND 102,400/share – the price that almost no investor dares to “dream” after the “crumbling” phase of banking stocks in 2008.
• More remarkably, before the listing, Techcombank issued to foreign partners at VND 128,000 VND/share, equivalent to 42,666 VND/share after share bonus.

Silent during the year

• When Covid-19 broke out in late March 2020, TCB dropped to nearly VND 15,000/share.
• Half a year later, TCB had no outstanding transactions, getting along with the market, and only peaked to around VND 24,000-25,000/share in October.

Boom

To F0 investors, bank shares are undervalued; only a part of traditional investors share this view.

• Despite a much smaller size compared with state-owned and semi-state banks, TCB’s 9-months PBT of VND 10,711 billion is higher than VietinBank, BIDV,  and is the leader in joint-stock credit institutions.
• F0 investors probably do not fully understand the ups and downs of banks over the past 10 years, especially in comparison with each other. What they foresee in the near future is the stable high-profit growth of Techcombank.

The conflict in investment opinions will be overshadowed if the market still moves forward. Cheap money is still flooding both domestic and foreign markets and is a catalyst for F0 investors. The game of TCB shares, therefore, will need more time to verify.

Content source: 
1. Hai Ly. (2020) Giải mã cổ phiếu Techcombank. Saigon Times. Available at: https://www.thesaigontimes.vn/310267/giai-ma-co-phieu-techcombank.html [Accessed on December 27, 2020]