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Real estate companies lose trillions of đồng due to COVID-19

by ,http://vietnamnews.vn/economy/674631/real-estate-companies-lose-trillions-of-dong-due-to-covid-19.ht04 April 2020 Last updated at 09:49 AM

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Real estate companies lose trillions of đồng due to COVID-19
Reduction in share prices of many real estate businesses due to the novel coronavirus (COVID -19) outbreak has made those firms lose thousands of billion đồng in their market capitalisation value.

 

 

 

The Đất Xanh Group Joint Stock Company's Opal Skyview project in Hà Nội, This company's DXG code has suffered great impacts from the COVID-19 pandemic, leading to a decrease in share price. Photo centralland.com.vn

HÀ NỘI – The novel coronavirus (COVID -19) outbreak has cost many real estate firms trillions of đồng from their market capitalisation value.

Đất Xanh Group Joint Stock Company (DXG) is one of those to have suffered the greatest impacts of the pandemic, leading falling share prices.

The price of DXG dropped strongly from VNĐ14,300 per share on January 2, 2020 to VNĐ7,770 on April 1, costing the group over VNĐ3.4 trillion (US$145.2 million) in its market capitalisation value.

LDG Joint Stock Company (LDG), has lost VNĐ1.13 trillion in market capitalisation value due to falling share prices during the outbreak. LDG has decreased from VNĐ8,850 per share on January 2, 2020 to VNĐ4,160 on April 1.

Meanwhile, An Dương Thảo Điền Real Estate Investment and Trading Joint Stock Company (HAR) was at VNĐ2,250 per share on April 1, down by VNĐ1,700 compared to the beginning of the year. As a result HAR's market capitalisation value has plunged VNĐ185 billion, reported Tiền Phong (Vanguard) newspaper.

Hoàng Quân Real Estate Joint Stock Company (HQC) also fell by VNĐ80 per share to VNĐ1,070 per share on April 1 against the start of this year, with market capitalisation value declining by VNĐ38 billion.

An Gia Real Estate Investment and Development Joint Stock Company’s (AGG) shares have also plummeted from VNĐ30,400 per share on January 9 to VNĐ26,500 on April 1. AGG has lost nearly VNĐ300 billion in the last three months.

According to economist Nguyễn Minh Hoàng, the real estate market this year has been facing many difficulties due to low supply and the impact of COVID-19. Therefore, real estate stocks were unlikely to resume growth quickly so investors should be cautious.

Financial expert Bùi Quang Tín from the Banking University of HCM City told Tiền Phong that the domestic stock market was difficult to forecast for the next few months so investors should follow the market closely and avoid sell-offs or bottom-fishing.

“The stock market will have recovery when the pandemic ends. After this pandemic, enterprises will resume production and stabilise business activities. At that moment, capital in the stock market will increase and of course, share prices will surge,” Tín said. “But that is the prospect for the next 3-6 months.”

Meanwhile, Trương Hiền Phương, brokerage director at KIS Vietnam Securities Corporation’s branch in HCM City, said if investors were interested in real estate stocks, they should study who owned those shares and wait until the market had made reasonable adjustments to buy them, Phương said. - VNS