Japan discharges millions of tons of radioactive wastewater, Vietnamese seafood stocks increase sharply

All increased sharply

In the morning trading session on August 25, ACL shares of Cuu Long An Giang Seafood Import-Export JSC increased by nearly 7% to VND14,200/share.

IDI shares of IDI Multinational Investment and Development Corporation also increased to the maximum allowed range to 13,400 VND/share.

At 10am, Vinh Hoan Seafood shares of Western seafood queen Truong Thi Le Khanh increased sharply by VND2,800 to VND75,300/share.

Nam Viet Seafood (ANV) also increased nearly 6% to VND34,250/share.

By the end of the trading session, the seafood stock group still maintained a strong increase, with codes hitting the ceiling price such as: ACL, AGF, IDI, CAD, JOS.

The general stock market is still under selling pressure. The VN-Index closed the session on August 25 down 6.02 points to 1,183.37 points.

Banking and real estate stocks fell in price. The decision to temporarily suspend the implementation of some regulations prohibiting lending to real estate according to the new circular of the State Bank of Vietnam replacing Circular 06 has not really reassured investors.

Seafood stocks rose sharply as investors welcomed news that China will suspend imports of all seafood products originating from Japan starting August 24 to prevent risks from the discharge of treated radioactive wastewater into the sea.

According to Xinhua News, the move by the General Administration of Customs (GAC) of China was made as one of the emergency measures to comprehensively prevent the risk of radioactive contamination caused by Japan's discharge of radioactive wastewater. The decision is aimed at protecting the health of Chinese consumers and ensuring the safety of imported food.

The decision was made, according to GAC, in compliance with China's food safety laws, regulations related to food import and export safety, and the World Health Organization agreement…

Previously, Japan announced that it would start releasing more than 1 million tons of treated radioactive water from the Fukushima nuclear power plant into the sea from August 24.

Seafood stocks have positive prospects at the end of the year

Seafood stocks have been performing quite negatively since the end of 2022. Many stocks have decreased by 40-60% compared to the peak set in the second quarter of 2022 due to low consumption demand in the US, Europe and China.

However, recently this group of stocks has shown signs of recovery with expectations that imports from the US market will recover from the second half of 2023.

According to VnDirect Securities, seafood imports to the US market are forecast to recover by the end of 2023 after a sharp decline since the end of 2022 due to high inflation and falling US consumer income. Inflation in the US has cooled down, the world's No. 1 economy is still quite strong. This is a factor that helps consumption in this superpower increase again.

Besides, the end of the year is also the peak consumption season for seafood products.

In the European market (EU), demand for Vietnamese pangasius is forecast to recover by the end of the year as seafood supply remains affected by tensions between Russia and Ukraine.

It is forecasted that seafood exports from Vietnam to China will still be difficult due to the country's economic growth slowing down sharply. However, China's suspension of imports of all seafood products originating from Japan is beneficial information for Vietnam's seafood exports. Currently, China is Vietnam's third largest seafood export market, after the US and Japan.

For listed seafood enterprises, due to the bleak outlook, most units have set cautious business plans for 2023. This is the reason why the stock prices of this group have decreased recently.

The gloomy outlook with negative earnings growth forecast for 2023 has been reflected in the stock price. Therefore, new positive signals are considered as factors pushing the stock price of this industry group to increase again.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), China is currently the largest importer of Vietnamese seafood products, including pangasius and shrimp.

Vinh Hoan Seafood (VHC) is a business promoting exports to the Chinese market.

China’s opening of its borders earlier this year and now its decision to suspend seafood imports from Japan are favorable factors for Vietnamese seafood businesses. This is considered a market that helps offset declines from G7 countries such as the US, EU, UK, Italy, Japan, etc.

Currently on the stock exchange there are many seafood businesses such as: AAM, ABT, ACL, DAT, ANV, CMX, FMC, IDI, VHC, BLF, KHS, SJ1, CAD, VNH, SEA, AGF, ICF, MPC, CAT, SPH, THP, TS4...

Seafood exports 'fall short' by 1.3 billion USD, shrimp and fish prices drop sharply Seafood exports continue to decline, with a loss of more than 1.3 billion USD compared to the same period last year. Prices of raw shrimp and pangasius at farms in the Southern region have also dropped sharply due to supply exceeding demand.

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