Hoa Binh Construction and HAGL Agrico shares sold off after delisting news

This morning, shares of Hoa Binh Construction Group and Hoang Anh Gia Lai International Agricultural Company (HAGL Agrico) both fell to the floor price right after opening. The two codes HBC and HNC fell nearly 7% (maximum amplitude on HoSE) to 6,750 VND and 4,340 VND, in a "blank buy" state.

By the end of the morning session, HBC's liquidity reached just over 200,000 units, while the remaining floor price sell order was over 12.5 million shares. Trading volume was also significantly lower than the average of over 1.7 million shares per session in the past year.

Compared to HBC, HNG shares have more active liquidity. This code matched more than 2.2 million shares at the floor price, with over 10.4 million units remaining for sale. HNG's morning liquidity was equivalent to the average level of recent sessions.

Meanwhile, the VN-Index remained green this morning. The HoSE index opened above the reference level, trading around 1,245-1,250 points. Some banking and insurance stocks supported the market. However, liquidity remained low, showing investors' caution. By the end of the morning, the trading value on HoSE only reached over VND5,000 billion.

The massive sell-off of HBC and HNG stocks occurred after the Ho Chi Minh City Stock Exchange (HoSE) announced the mandatory delisting of these two stocks at the end of last week. The reason was due to the same business losses in recent years.

Hoa Binh Construction's accumulated loss by the end of 2023 was VND3,240 billion, exceeding the company's actual contributed charter capital of VND2,741 billion. The company suffered losses for two consecutive years before the real estate market "froze", causing revenue to decline and bad debts to increase, creating a burden on provisions. At the same time, a "civil war" broke out at the company's upper echelons.

Meanwhile, HGAL Agrico has been continuously losing money due to operating below cost as the fruit and rubber sectors have had poor results, while livestock farming has not brought in great results. In addition, the company also has many debts, creating great financial pressure.

In a statement last weekend, HBC said it would transfer the listing of nearly 347.2 million shares to UPCoM and complete it in August. Unlike HoSE, the fluctuation range of stock prices on UPCoM is up to 15% per session. Speaking toVnExpressOn July 27, Mr. Le Viet Hai - Chairman of the Board of Directors of HBC - said that the transfer of the trading floor does not affect the basic rights and interests of shareholders. In addition, Hoa Binh committed to performing its obligations no differently than before, Mr. Hai affirmed that the stock price will not be affected.

As for HGAL Agrico, at the annual meeting in May, Mr. Tran Ba ​​Duong, Chairman of the Board of Directors, said that he had anticipated the scenario of being delisted. But according to him, this is not a cause for concern. Mr. Duong affirmed that despite the transfer of the floor, the company still disclosed information transparently and if done well, the stock price could still improve.