Foreign investors unexpectedly bet on billionaire Pham Nhat Vuong's business

The stock market recorded a dramatic trading session on October 20. With the downward momentum from previous sessions, VN-Index dropped another 10 points in the morning but suddenly jumped again in the afternoon session, ultimately increasing by more than 20 points, ending a good session on October 20 for many investors.

At the opening of the trading session on October 20, caution still prevailed across the market after several sessions of investors being “ambushed” in the regular order matching session at the end of the session (ATC). Most stocks were under selling pressure and the general market at times fell 10 points.

However, demand increased quite rapidly in the afternoon session, with breakthroughs in many industry groups, including real estate, banking, retail, oil and gas, consumer goods, steel, technology, etc.

The most prominent is the real estate group, including Vinhomes shares of billionaire Pham Nhat Vuong.

At the end of the trading session, Vinhomes shares (VHM) increased by VND2,000 (+4.7%) to VND44,500/share with nearly 3.2 million shares transferred through order matching, in which foreign investors bought a large volume (19.2 million shares, worth VND816 billion). Along with other real estate stocks, Vinhomes pulled the stock market back up.

vinhomesphamnhatvuong ndt.jpg — *Foreign investors unexpectedly bought a lot of Vinhomes shares of billionaire Pham Nhat Vuong. (Photo: NDT)*

Including matched transactions, foreign investors net bought 18.7 million Vinhomes shares of billionaire Vuong, worth nearly 800 billion VND.

This is also the stock code that contributed the most to the strong increase of the VN-Index.

Vinhomes has rebounded strongly as its stock price has fallen close to its historic low. In the session of October 19, VHM fell to VND42,500/share, only slightly higher than the record low price of VND40,000/share (adjusted price) recorded in March 2020 and early February 2023.

The stocks of the “Vin family” including Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE) have recently decreased sharply following the general market trend and the pressures that real estate businesses are facing.

However, the recovery of Vinhomes shares in the session of October 20 boosted demand for many other real estate and banking stocks, thereby helping the stock market reverse, ending four consecutive sessions of deep decline.

Some real estate codes hit the ceiling, including CEO, DIC Corp. (DIG), Dat Xanh (DXG), Ha Do (HDG), Nha Ba Ria Vung Tau (HDC), Nam Long (NLG)...

In fact, some recent reports are still cautious about the prospects of the real estate group due to the gloomy market, weak demand, legal issues that need more time to be resolved, high interest rates, large debt burden, large bond debt and strong maturity at the end of 2023 and in 2024...

Revenues of real estate businesses are still considered weak, just like last year. In the case of Vinhomes, revenue recorded from previous projects (such as Ocean Park) will not be much left.

VNDirect believes that Vinhomes' revenue will slow down in the second half of the year, after recent strong growth.

Many real estate businesses are still facing many difficulties such as Novaland (NVL), Phat Dat (PDR), Hai Phat (HPX)...

Novaland of Mr. Bui Thanh Nhon is still pushing forward with debt restructuring. Meanwhile, real estate giant Hai Phat Invest (HPX) of Chairman Do Quy Hai is still recording unusual fluctuations. Capitalization has evaporated sharply and there are signs of changing owners.

Some large real estate companies that are secretive and have huge projects in Vietnam are drowning in debt, such as Saigon Investment and Development Corporation (SDIC). Currently, this company has a negative capital of VND1,557 billion and a debt of VND97,000 billion.

Many large enterprises have to abandon prime land projects and transfer them to other partners, such as the recent case of Hoang Anh Gia Lai (HAG) selling its hotel.

Hai Phat sells Hospitality Nha Trang; Danh Khoi (NRC) sells the Riverside Tower project in Da Nang; Idico (IDC) sells the urban area project to AEON to make a commercial center in Long An; Vinaconex Tourism (VCR) terminates cooperation in Cat Ba Amatina...