Real estate stocks are boiling, Novaland reverses to hit the ceiling, Phat Dat suddenly changes

The stock market had another exciting trading session with soaring liquidity. Cash flow poured into many groups of stocks, including real estate and construction materials stocks. Steel stocks, including Hoa Phat Group (HPG) of billionaire Tran Dinh Long, also performed impressively.

Near the end of the trading session on the afternoon of June 7 (nearly 2:30 p.m.), a large amount of Novaland (NVL) shares were bought out, pushing the price to the ceiling.

By the end of the afternoon session, more than 52.8 million Novaland shares were matched. At the end of the session, NVL increased by 950 VND to 14,550 VND/share.

PDR code of Phat Dat Real Estate also hit the ceiling, from before with nearly 22.3 million units transferred. PDR increased by 1,000 VND to 15,950 VND/share.

At the end of the trading session on June 7 (2:45 p.m.), both stocks increased to their full range. The selling volume in the regular order matching session at the end of the session (ATC) was not much because there were very few sellers.

Meanwhile, the remaining ceiling price and ATC price for Novaland and Phat Dat Real Estate shares amounted to millions of units.

*The stock market is attracting cash flow. (Photo: HH)*

At the end of the session on June 7, VN-Index had another session of increase, with 1.23 points to 1,109 points, despite strong profit-taking pressure after the prices of many groups of stocks increased sharply in the past 1-2 weeks. Liquidity on the HOSE floor reached more than 995 million units, worth more than 17,900 billion VND.

In the pillar stocks group (VN30), the market recorded a breakthrough of HPG (Hoa Phat). This stock increased by 850 VND to 22,600 VND/share - a new high since October 2022. HPG witnessed nearly 55.5 million units transferred in the session of June 7.

Masan (MSN), chaired by Mr. Nguyen Dang Quang, also increased sharply by 1,900 VND to 75,500 VND/share.

Steel stocks exploded after news of domestic demand recovery. Other steel stocks such as Nam Kim (NKG), Hoa Sen (HSG), POM, TLH, TIS… all increased sharply, with explosive liquidity.

Thus, after real estate, the steel group has started to increase in the past few sessions. POM shares even increased by more than 50% after only about 2 weeks.

On June 6, Hoa Phat Group said that sales of steel products (construction steel, hot-rolled steel coils and steel billets) in May increased by 16% compared to April. This is also the highest steel consumption of the group since the beginning of the year.

Hoa Phat has recently reopened some blast furnaces (closed at the end of last year). Meanwhile, Pomina also plans to reopen blast furnaces. Globally, steel prices are also rising slightly again.

Explaining the phenomenon of many groups of stocks rebounding, Mr. Nguyen Hung (an investor in Hanoi) said that money seems to be pouring in to catch the bottom early when stock prices are still low. A series of policies to support the economy have been introduced and may have a positive impact on businesses in the next few months.

Mr. Hung also said that interest rates have decreased in many banks. At this early stage, the absorption capacity of enterprises is still low. Credit growth is at a very low level. Therefore, smart money can choose a destination for short-term profits.

Many experts are cautious about the market. Mr. Bui Van Huy, Director of DSC Securities Corporation, Ho Chi Minh City branch, said that "everything is still normal", it could be a wave of FOMO (fear of missing out), fear of missing out on opportunities.

Mr. Vicente Nguyen, Investment Director of AFC Vietnam Fund, said that many stocks increased sharply but were actually still in a "knockout" state. For example, NVL still lost 70-80% compared to its peak.

Experts assess that it is likely that some stocks will have difficulty returning to their old levels after the events, like the case of Hoang Anh Gia Lai (HAG) of Mr. Doan Nguyen Duc (HAG).

With real estate, this possibility is even more difficult. In fact, during the real estate crisis in 2012, many codes such as QCG, SCR… have not yet “returned to shore”.

According to VNDirect, it is too early to assess whether the real estate market will soon "defrost" when the actual effectiveness of policy implementation is still unclear and many bottlenecks have not been thoroughly resolved.

The sluggish demand from the domestic civil construction sector will have a significant impact on the demand for construction materials. Total domestic steel demand is forecast to still grow by negative single digits in 2023.

Even with Hoa Phat, the public investment boost is expected to not be as expected.

VCBS Securities believes that the proportion of steel consumption in public investment is insignificant, only 10%-15%. Currently, the speed of disbursement of public investment capital is still quite slow.

Real estate and banking stocks are surging: Is it time to invest? Maintaining the upward momentum from last week, real estate stocks continued to rise enthusiastically in the new week's session amid falling interest rates and forecasts of further declines.

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