After about an hour of trading, NVL dropped sharply and hit the floor until the end of the morning, this stock fell into a “blank” state on the buying side.
At the opening of this morning’s trading session, NVL shares of Novaland Group almost went below the reference price right from the start. The price of this code dropped gradually and sharply decreased to 11,850 VND per unit at around 10:00. The bottom-fishing demand appeared and pushed the price of this stock up in a few minutes. However, the selling pressure immediately overwhelmed, pushing NVL to the floor continuously until the lunch break.
Novaland’s stock code achieved the highest liquidity in the entire market with over VND575 billion, accounting for over 9% of the total transaction value on the HoSE. On the positive side, active buy orders accounted for about 61.5%, showing the market’s absorption. However, from around 10:30 a.m., this stock fell into a “blank” state on the buying side, with over 2.4 million units remaining for the entire morning.
Novaland stock price movements on the morning of September 11. Photo: TradingView
NVL fell after the Ho Chi Minh City Stock Exchange (HoSE) decided to put this code and SC5 on the list of ineligible stocks for margin trading from September 10. The reason is that the two units were late in announcing their audited semi-annual financial reports.
Novaland said that in the first 6 months of the year, the company implemented many plans and programs at the same time, such as restarting projects, completing and handing over products, and handing over certificates to residents. Therefore, transactions and the number of documents between the parent company and its subsidiaries increased, slowing down the process of completing financial reports.
“We are working hard with the auditor to complete the final stages of the review to soon announce the information,” said an NVL representative.
The company’s unaudited financial report shows that revenue in the first 6 months of the year reached 2,246 billion VND and profit of nearly 345 billion VND. Compared to the first half of last year, revenue has increased by 35% and profit has increased sharply compared to a loss of more than 1,094 billion VND. The company has completed less than 7% of the revenue target and nearly 32% of the profit plan for the whole year. However, the point of recording cash flow of real estate businesses is often in the second half of the year.
At a recent investor meeting, Novaland said that by the end of June, they had handed over about 4,388 products at projects in Ho Chi Minh City, Aqua City (Dong Nai), NovaWorld Ho Tram (Ba Ria – Vung Tau) and NovaWorld Phan Thiet (Binh Thuan). If legal procedures are completed on schedule, the company promises to hand over 2,580 more properties between now and the end of the year. In the scenario of completing legal procedures for Aqua City, Novaland will complete 90% of the restructuring process.
Yesterday, the Military Bank (MB) committed to disbursing VND1,100 billion for this project to speed up construction. Currently, the People’s Committee of Dong Nai province has agreed to allow the investor Aqua City to conduct research to prepare a detailed planning adjustment dossier of 1/500 in parallel with the approval of the project to adjust the planning of subdivision C4 of Bien Hoa city.
NVL is one of three stocks on the HoSE that fell by the largest margin this morning. The stock market in general performed poorly as more than two-thirds of stocks fell in price, the most dismal being the real estate sector. The VN-Index closed at 1,248.4 points before the lunch break, nearly 7 points lower than the reference.