After the Q2/2023 financial statement season, a series of companies had to announce losses in the first 6 months of 2023. Recently, HoSE also updated and added a number of securities codes to the list of stocks that are not eligible for margin trading (margin cut).
A typical example of the group of stocks whose margin was cut by HoSE is ADG of Clever Group JSC, which recorded a loss of VND 1.6 billion in the first quarter of 2023. The company's second quarter profit also decreased by 67%, causing the stock price to reverse. In ADG's recent financial statements, the auditor also gave an unqualified opinion on some information.
Clever Group's ADG code is also on the list of HoSE's margin cuts (Photo TL)
DRH code of DRH Holdings JSC is also subject to margin trading by HoSE because the business results in Q2 recorded revenue of only VND872 million, loss after tax of up to VND41.2 billion. Or like HAS of Hacisco reported a loss of VND318 million in Q1, revenue in Q2 continued to decline and only reached a symbolic profit of VND612 million.
According to updated statistics from HoSE, as of August 30, 2023, a total of 94 stocks had their margin cut. The reasons include the company being at a loss, being warned, being controlled, or having been listed for less than 6 months, so it is not eligible for margin trading.
The suspension of margin trading will affect trading activities as well as the market's investment demand for the stocks on the list. Because when margin trading is suspended, investors will lose the opportunity to make big profits, thereby indirectly making this stock less attractive.
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