Stocks hit the bottom long-term, capitalization Hoa Phat, Masan decreased by hundreds of trillion dong

Even HPG stock could not hold its position in the top 10 by market capitalization on the stock exchange.

The stock market on October 6 witnessed another strong decline with the VN-Index down 29.74 points (-2.69%) to 1,074 points after the 26-point rally yesterday. Red covered all exchanges, with 773 losers and only 189 gainers.

Thus, since September 23, when the market started to plunge until now, the VN-Index has dropped 140 points, equivalent to a decrease of 11.5%.

The stock market has fallen sharply since April, important milestones have been penetrated in turn under strong selling pressure in most stock groups, from bluechips, midcaps to penny stocks. even bottom.

At the end of today’s session, MSN shares of Masan Group Joint Stock Company (Masan Group) fell 4,700 dong/share, equivalent to 5.1% decrease to 86,700 dong/share, breaking the bottom price in May was about 89,000 dong/share. after editing).

HPG shares of Hoa Phat Group JSC decreased by 1,200 VND/share, equivalent to a decrease of 6.2% to 18,000 VND/share. Similar to MSN, HPG broke the bottom price of about 20,500 VND/share.

If counting from the peak of October 2021 until now, HPG’s stock price has decreased by 59%, the capitalization has also decreased by about 150 trillion dong, currently HPG’s market capitalization is about 105 trillion dong. Even HPG could not keep its position in the top 10 by market capitalization on the stock exchange. And MSN stock also fell by 39%, market capitalization decreased by 78 trillion dong.

HPG shares dropped in the context of many unfavorable factors significantly affecting business results, typically steel price. Accordingly, the last 2nd quarter of 2022 can be considered as one of the most difficult periods in more than 2 years for the steel industry and Hoa Phat. Steel prices fell while input material costs were still high, causing the net profit of the leading steel company to decrease by 59% over the same period to about VND 4,000 billion.

Currently, although Hoa Phat’s construction steel price in the domestic market has increased in recent weeks, the price increase is only from 100-200 VND/kg each time. In addition, interest rates tend to increase, which is also a disadvantage when Hoa Phat’s financial structure recognizes that debt accounts for a large proportion. At the same time, Hoa Phat also suffers from the fear of exchange rate escalation. Particularly in the second quarter, the USD kept increasing, causing the company to lose 1,100 billion VND in exchange rate.

As for Masan, after the profit boom in the fourth quarter of last year, Masan’s net profit in the first two quarters of the year returned to 1,000 billion dong. In the first 6 months of the year, Masan recorded net revenue of VND 36,023 billion, down 12.5% ​​YoY due to the impact of the transfer of animal feed, but Masan’s profit after tax in the first half of the year reached VND 3,110 billion, a sharp increase of 123% over the same period. Revenue at Masan Consumer Holdings, Masan High-Tech Materials, Phuc Long Heritage all grew over double digits.

Huyen Trang/Market life