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Tuesday, July 23, 2024

HOSE slaps trading restrictions on HBC shares

The Saigon Times

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HCMC – The Ho Chi Minh Stock Exchange, or HOSE, has imposed trade restrictions on the stock of Hoa Binh Construction JSC (stock code HBC) due to the company’s failure to submit its 2022 earnings report.

HBC shares can only be traded in the afternoon session of the trading day by order matching and put-through trading methods from May 23.

Last month, the firm was put under watch due to the same reason.

Hoa Binh Construction Group has sought approval from the State Securities Commission of Vietnam to extend the deadline for filing its 2022 audited financial statement, attributing the delay to the slower-than-expected implementation of projects nationwide, the dormant real estate market, and problems with the firm’s internal governance.

The company in a report said that it made over VND14.1 trillion in net revenue last year, up 24% versus the previous year.

Due to higher input costs, HBC reported an after-tax loss of over VND1.1 trillion, compared to a profit of VND96.97 billion in the previous year.

Given uncertainties, HBC’s board of directors has set a revenue target of VND12.5 trillion this year, down 11% against last year, and an after-tax profit of VND125 billion.

As the news on HBC share trade restrictions broke, HBC plunged to its daily lower limit at the close despite a 2% rise in the morning trading session today, May 17, at VND8,560 per share, with a matching volume of 14 million shares.

With decliners outnumbering advancers by 246 to 141, the VN-Index of the HOSE lost 5.47 points, or 0.51%, at 1,060.44 points.

Trade on the southern bourse improved 22.6% in volume and 17.5% in value against the previous session, with 832.5 million shares worth over VND13.1 trillion changing hands. Block deals contributed VND1.6 trillion to the overall value with 74.6 million shares traded.

Bluechip VHM prevented the main index from sliding further with a gain of 2.3% and a matching volume of 3.1 million shares.

As many as 23 stocks in the VN30 basket turned losers and the VN30-Index shed 7.54 points from the session earlier to 1,062.10.

Many construction and real estate stocks fell 2.6% to 4.5%, such as NVL, KBC, ITC, KDG, NTL, SJS, DXG, DRG and NLG.

Only three banks stayed in the green, with SHB, HDB and VCB inching up 0.9%, 0.5% and 0.2% day-on-day, respectively.

VDS was the only winner among securities stocks, increasing 4.2% over the previous session.

SHB took the lead by liquidity today with over 30.1 million shares transacted.

On the northern bourse, the HNX-Index edged down 1.76 points, or 0.82%, from Tuesday to 212.96 points, with 87 gainers and 93 losers.

The Hanoi Stock Exchange saw 119.7 million shares valued at VND1.6 trillion traded, rising 18% in volume and 8% in value day-on-day.

SHS was the most traded stock on the northern market with nearly 28.3 million shares changing hands but finished the day down 2.7% to VND10,700 per share.

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