Many companies with losses in the first half of 2023 have their stock margin cut

After the Q2/2023 financial reporting season, a series of companies had to announce losses in the first 6 months of 2023. Recently, HoSE also updated and added a number of stock codes to the list of stocks that are not eligible for margin trading (margin cut).

Typical among the group of stocks whose margin was cut by HoSE is ADG of Clever Group JSC, which recorded a loss of 1.6 billion VND in the first quarter of 2023. The second quarter profit of this unit also decreased by 67%, causing the stock price to reverse. In ADG's recent financial statements, the auditor also gave an opinion that it did not fully accept some information.

Clever Group's ADG code is also on the list of HoSE's margin cuts (Photo TL)

DRH code of DRH Holdings JSC is also subject to margin trading arrest by HoSE because the business results of Q2 recorded revenue of only VND872 million, loss after tax up to VND41.2 billion. Or like HAS of Hacisco reported a loss of VND318 million in Q1, revenue in Q2 continued to decline and only reached a symbolic profit of VND612 million.

According to HoSE's updated statistics, as of August 30, 2023, a total of 94 stocks had their margin cut. The reasons include the company's loss-making status, being warned, being controlled, or having been listed for less than 6 months, so it is not eligible for margin trading.

The suspension of margin trading will affect trading activities as well as the market's investment demand for the stocks on the list. Because when margin trading is suspended, investors will lose the opportunity to make big profits, thereby indirectly making this stock less attractive.

Source: https://www.congluan.vn/nhieu-cong-ty-thua-lo-nua-dau-nam-2023-bi-cat-margin-chung-khoan-post262751.html