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Friday, August 12, 2022

Multiple non-financial firms incur losses on stocks

By Van Phong

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HCMC – A plunge in share prices on the local stock market has led to many non-financial businesses facing huge losses.

Investing in stocks is a popular investment vehicle selected by firms active in production, business and construction to make profits in the 2020-2021 period, when business and production activities were halted by the Covid pandemic.

In the first half of 2022, the stock market turned volatile due to new rate adjustments, sending stock prices down. Of course, many of these firms faced huge losses due to the plunge.

Thanh Thai Group JSC (KKC) reported its after-tax profit of negative VND22.6 billion in the second quarter of the year, while it made a hefty profit in the same period last year. The loss was attributed to its investment in stocks.

The Thanh Thai Company is pouring money into realty firm VIC and housing company VHM, with a total value of nearly VND121 billion. The two tickers have lost over 22% during the first half of 2022.

Facing the same fate, Licogi 14 JSC incurred a loss of VND346 billion in the first six months as the firm set aside VND379 billion as a backup for reduced stock prices.

According to its audited 2021 financial report, Licogi 14 poured VND298 billion into construction firm CEO and VND188 billion into real estate stock DIG. However, the prices of these stocks have taken a nosedive.

Danang Housing Investment Development JSC posted VND114 billion in lost revenue in the second quarter of the year as the stock market volatility weakened its investment.

Petrovietnam Securities Incorporated forecast the local stock exchanges will see many sessions lose ground in the second half of the year due to negative global information, high inflation and rising unemployment.

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