Novaland gets extensions for 2 bond issues, NVL hits ceiling price.

Công Luận•24/03/2023

Novaland gets extensions for 2 bond issues, NVL hits ceiling price.

The stock market calmed down on March 24th, although the global banking sector is still expected to face many challenges. The VN-Index fluctuated within a narrow range. Liquidity improved towards the end of the day.

At the close of trading on March 24, the VN-Index stood at 1,046.79 points after rising 1.69 points, or 0.16%. The VN30-Index increased by 4.82 points, or 0.46%, to 1,051.42 points.

The entire exchange recorded 580 million shares, equivalent to VND 9,442 billion, successfully traded, a slight increase compared to yesterday. The VN30 group saw 177 million shares, equivalent to VND 3,900 billion, successfully transferred. Within the VN30 group, 19 stocks increased in price, 1 remained unchanged, and 10 decreased in price.

Novaland's stock market shares were extended, with 2 bond tranches increasing to the ceiling price (Figure 1). — On March 24th, the stock market witnessed a "solo performance" by NVL shares. Following news that Novaland had its bond issuance extended for two tranches, NVL surged to its ceiling price with a sharp increase in trading volume. (Illustrative image)

The focus of the stock market on March 24th, and the blue-chip group in particular, was entirely on Novaland's NVL stock. At the beginning of the session, NVL saw a slight decline but then quickly surged to its ceiling price, increasing by 750 VND/share to 11,900 VND/share after news broke that Novaland had its two bond tranches extended.

Specifically, the two bond issues NVLH2124002 and NVLH2224006 will have their maturity dates extended by 1 and 2 years, respectively. During the extension period, the interest rate for these two bond issues will be 11.5% per annum, higher than the previous fixed interest rate of 10.5%.

The bondholders' representatives, BSC Securities Company and PSI Securities Company, agreed not to declare a breach of contract for the bonds within the stipulated timeframe.

Not only did NVL shares hit the ceiling price, but their trading volume also surged. A total of 30.5 million shares were traded. Meanwhile, the average trading volume of NVL over the past 10 sessions was over 10 million units.

On the Hanoi Stock Exchange, indices also rose slightly. At the close of trading on March 24th, the HNX-Index increased by 2.4 points, or 1.18%, to 205.72 points. The HNX30-Index increased by 4.24 points, or 1.18%, to 364.25 points. Liquidity on the Hanoi Stock Exchange remained low, with only 67.2 million shares, equivalent to 971 billion VND, traded.

Global stock markets plunged into the red.

Asian-Pacific markets traded mixed on Friday as investors weighed comments from U.S. Treasury Secretary Janet Yellen, who said federal emergency action to support failing regional banks could be used again if necessary.

This conveys a different message from Yellen's comments the day before, when she told senators that the Treasury Department was not considering any plan to secure all U.S. bank deposits without congressional approval.

The Hang Seng index led the region's losses, trading down 0.65%, but the Hang Seng Tech index rose 0.61%.

In mainland China, the Shanghai Composite closed down 0.64% at 3,265.65, but the Shenzhen Component rose 0.25% to 11,634.22.

South Korea's Kospi fell 0.39% to 2,414.96, but the Kosdaq traded 1.47% higher, ending at 824.11.

In Japan, the Nikkei 225 index fell 0.13%, closing at 27,385.25, and the Topix ended 0.1% lower at 1,955.32. The country saw core inflation at 3.1% in February, marking the first time in 14 months that the pace of inflation has slowed.

Australia's S&P/ASX 200 fell 0.19%, ending the day at 6,955.2.

In the United States, stocks ended higher on Thursday after a volatile trading session. The technology-heavy Nasdaq Composite led the gains, rising 1%, while the S&P 500 closed 0.29% higher and the Dow Jones Industrial Average gained 73.66 points.

European stock markets fell on Friday as investors anticipated a week of central bank interest rate hikes and the latest news from the banking sector.

The pan-European Stoxx 600 fell 1.17% at 9:30 a.m. in London, with all sectors either down or flat.

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