In the session of September 17, NVL shares of Novaland, chaired by Mr. Bui Thanh Nhon, continued to fall sharply, at one point losing 550 VND to 10,650 VND/share, before closing the morning at 10,850 VND/share.

This is a very low price compared to over VND 18,000/share in early April and nearly VND 90,000/share (adjusted price) in September 2022. The current price is only slightly higher than the record low of VND 10,300/share recorded at the end of February 2023.

NVL has fallen sharply in recent months, in the context that this business has received a lot of bad news related to transactions on the stock market.

On the morning of September 17, the Ho Chi Minh City Stock Exchange (HoSE) announced its decision to put NVL shares on warning status from September 23, due to violating regulations on submitting audited semi-annual financial statements for 2024.

NovaWorldPhanThiet NVL2024Sep17.gif
NovaWorld Phan Thiet project by Novaland. Source: NVL

On September 11, NVL hit the floor after HoSE put this stock on the list of ineligible for margin trading, because Novaland delayed the disclosure of the audited semi-annual financial report for 2024 after 5 working days from the deadline for information disclosure.

Information that a group of shareholders related to Mr. Bui Thanh Nhon has reduced their ownership ratio at Novaland may also have a negative impact on NVL shares. On September 6, NovaGroup sold more than 3 million shares, reducing the ownership ratio of the group of shareholders related to Mr. Nhon to below 39%. Since the beginning of the year, NovaGroup has net sold more than 36 million NVL shares. In the past 2 years, the group of shareholders related to Mr. Nhon has reduced its ownership ratio of more than 400 million NVL shares.

On the other hand, NVL's financial situation is improving following the restructuring process. Many projects have seen positive changes. The Aqua City super project has just received an additional VND1,100 billion from the bank. Many properties in this project are eligible for sale.

Responding to HoSE's move, Novaland said it is working hard with the auditor to soon announce the audited semi-annual financial statements for 2024.

The first 6 months of 2024 is the time when the restructuring process takes place strongly and drastically at Novaland. This real estate group has completed the restructuring of most of its current debts, with many positive changes in the financial situation, project legality, construction and handover progress, as well as the work of granting home ownership certificates to residents...

According to Novaland, the transaction volume, complexity and number of documents that need to be reviewed have increased, leading to a lot of time needed to process documents and ensure the accuracy, reasonableness and transparency of financial data. Novaland is working hard with the auditor to complete the final review stages, in order to soon publish the 2024 semi-annual audited financial report.

After nearly 2 years of restructuring, Novaland has accelerated the construction of many key projects, handed over products to customers, and coordinated with local authorities to resolve legal issues in the projects. Novaland also negotiated with banks and financial institutions to mobilize new capital sources to continue construction at the projects.

In the stock market, caution still prevails, liquidity is low. The group of "Vin family" stocks increased quite well. By the end of the morning session on September 17, Vinhomes (VHM) shares increased by VND900 to VND42,650/share. Vingroup (VIC) increased by VND250 to VND42,300/share. Vincom Retail (VRE) increased by VND200 to VND19,100/share.

Banking stocks are diversified. Consumer and retail stocks are quite positive.

VN-Index increased slightly by 1.08 points to 1,240.34 points.

Entering the afternoon session, cash flow increased quite rapidly, thereby causing the VN-Index to skyrocket.

At 2:18 p.m., the VN-Index increased nearly 12 points to over 1,251 points.

However, liquidity remains low. Investors appear cautious ahead of the US interest rate cut. There is a more than 60% chance that the US Federal Reserve will cut interest rates by 50 basis points at its September 17-18 meeting. The US Dow Jones Industrial Average hit a new record high on September 16. Asian stocks were more cautious. Gold prices hit a new record high.

Some forecasts suggest that global investors are considering pouring capital into Southeast Asian markets thanks to the prospect of interest rate cuts.

Domestically, the State Bank has reduced mortgage interest rates to 4%. Exchange rates are on a downward trend. However, foreign investors have been net sellers since the beginning of the year. Cash flow in the market is quite weak.

Novaland delayed in submitting financial report, stock hit floor, real estate group dropped sharply Novaland stock, chaired by Mr. Bui Thanh Nhon, hit the floor after HoSE put NVL stock on the list of stocks not eligible for margin trading. Real estate stocks fell accordingly, pushing the VN-Index down by nearly 9 points.