Real estate companies lose trillions of VND due to COVID-19
The novel coronavirus SARS-CoV-2-caused acute respiratory disease (COVID -19) pandemic has cost many real estate firms trillions of VND from their market capitalisation value.
Dat Xanh Group Joint Stock Company (DXG) is one of those to have suffered the greatest impacts of the pandemic, leading falling share prices.
Meanwhile, An Duong Thao Dien Real Estate Investment and Trading Joint Stock Company (HAR) was at VND2,250 per share on April 1, down by VND1,700 compared to the beginning of the year. As a result HAR's market capitalisation value has plunged 185 billion VND, reported Tien Phong (Vanguard) newspaper.
Hoang Quan Real Estate Joint Stock Company (HQC) also fell by VND 80 per share to VND1,070 per share on April 1 against the start of this year, with market capitalisation value declining by VND38 billion .
An Gia Real Estate Investment and Development Joint Stock Company’s (AGG) shares have also plummeted from VND30,400 per share on January 9 to VND26,500 on April 1. AGG has lost nearly VND300 billion in the last three months.
According to economist Nguyen Minh Hoang, 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 Bui Quang Tin from the Banking University of HCM City told Tien 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,” Ten said. “But that is the prospect for the next 3-6 months.”
Meanwhile, Truong Hien Phuong, 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, Phuong said.
Dat 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 VND14,300 per share on January 2, 2020 to VND7,770 on April 1, costing the group over 3.4 trillion VND (145.2 million USD) in its market capitalisation value.
The Dat Xanh Group Joint Stock Company's Opal Skyview project in Hanoi. (Photo centralland.com.vn)
Meanwhile, An Duong Thao Dien Real Estate Investment and Trading Joint Stock Company (HAR) was at VND2,250 per share on April 1, down by VND1,700 compared to the beginning of the year. As a result HAR's market capitalisation value has plunged 185 billion VND, reported Tien Phong (Vanguard) newspaper.
Hoang Quan Real Estate Joint Stock Company (HQC) also fell by VND 80 per share to VND1,070 per share on April 1 against the start of this year, with market capitalisation value declining by VND38 billion .
An Gia Real Estate Investment and Development Joint Stock Company’s (AGG) shares have also plummeted from VND30,400 per share on January 9 to VND26,500 on April 1. AGG has lost nearly VND300 billion in the last three months.
According to economist Nguyen Minh Hoang, 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 Bui Quang Tin from the Banking University of HCM City told Tien 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,” Ten said. “But that is the prospect for the next 3-6 months.”
Meanwhile, Truong Hien Phuong, 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, Phuong said.
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