Market plunges, HoSE suspends margin trading for another 86 stocks in Q4 2023.

86 stocks had their margin trading suspended by HoSE in Q4 2023.

The Ho Chi Minh City Stock Exchange (HoSE) has just announced a list of 86 securities that are ineligible for margin trading (margin trading has been suspended) in the fourth quarter of 2023. Compared to the list published in the third quarter, the number of companies with suspended margin trading is 10 more.

Most of the stocks subject to margin cuts belong to listed companies facing business problems such as: Angimex (AGM), Pomina Steel (POM), The Golden Group (TGG), Truong Thanh Wood (TTF), Tri Viet Securities (TVB)...

In the list above, some stock codes are still subject to trading restrictions or suspensions. Notably, shares of Hoang Anh Gia Lai (HAG) and Tan Tao ITA (ITA) are still under warning status by HoSE.

The market lost 86 shares, but the HOSE cut trading in Q4 2023 (Figure 1). — Amidst a continuous decline in the stock market, HoSE announced a list of 86 stocks whose margin trading has been suspended (Photo: TL).

Additionally, some stocks had their margin trading cut in the fourth quarter due to business results in the first half of 2023 showing after-tax losses attributable to parent company shareholders. Typical examples include Binh Thanh Production, Trading and Import-Export Joint Stock Company (GIL), which is suing Amazon for order cancellations causing business losses, Quoc Cuong Gia Lai (QCG),FPT Retail (FRT), etc.

With the HoSE (Ho Chi Minh Stock Exchange) cutting margin trading for the 86 listed stocks, investors will no longer be able to use their credit limits (financial leverage) to buy shares of these companies on the stock exchange. This will directly affect the purchasing power and price fluctuations of the listed stocks, especially in the current volatile market with many stocks falling in price.

The stock market saw a sharp decline last week, with 852 stocks falling in price.

Not only has the list of stocks whose margin trading has been suspended by HoSE been extended, but the stock market has also received a series of negative signals this past week.

Right in the first trading session of the week on October 3, 2023, selling pressure caused the market to fall relatively sharply. At one point, the VN-Index dropped by as much as 40 points with a tug-of-war between buyers and sellers.

Strong selling pressure on banking stocks negatively impacted the market. Simultaneously, the widespread decline in large-cap stocks also caused investor anxiety.

In the volatile trading session on October 3rd, statistics show that as many as 852 stocks declined in price. The total trading volume on the market was 24,750 billion VND, and the VN-Index fell to 1,118 points.

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