Valuing Securities Companies’ Stocks After the Market Surpasses 1,500 Points: Surprises with VIX, VND, SHS

The Vietnamese stock market has recently experienced a vibrant phase with the VN-Index surpassing 1,500 points. Securities companies’ stocks like VIX, SHS, SSI, and VND have all recorded significant growth since early July, with VIX up 62%, SHS 35%, SSI 30%, and VND 11%. Currently, the average industry valuation has a P/B of about 2 times and a P/E of about 22 times, not particularly attractive but still with growth potential. Many large stocks such as SSI, HCM, VCI have high P/B levels from 2 to 2.7 times, while VIX, SHS, and VND have lower valuations with P/B ranging from 1.4 to 1.8 times. SSI leads the market and has a large scale, while companies with lower valuations are facing growth challenges. Growth in the securities sector may be boosted if Vietnam is upgraded by FTSE Russell to emerging market class 2, which is expected to attract significant foreign capital. Therefore, securities companies’ stocks are considered a benefiting group in this context.