Novaland Investment Group (Novaland) stock experienced a significant sell-off in the first session this week, pushing its market price to the floor at 11,050 dong. This marked its lowest level in half a year, contributing to a six-session losing streak for NVL. The stock traded below its reference price throughout the day, with its market value declining by over 15% since early this month and reaching a low not seen since march.
The sell-off was characterized by weakened liquidity compared to previous trading sessions last week. While sellers accelerated their unloading of shares, there was a notable absence of buyers. Over 11 million shares were matched, totaling 132 billion dong. NVL closed with "no buyers", and a substantial volume of 54,3 million shares remained queued for sale at the floor price.
Increasing capital withdrawal pressure emerged after Novaland announced its plan to offer over 800 million shares to existing shareholders. This initiative aims to raise 8,000 billion dong, which will be used to repay bond debts for both Novaland and its subsidiaries. This marks the first time in five years that the company associated with Bui Thanh Nhon has sought to raise capital from shareholders. The offering price is set at 10,000 dong per share, significantly lower than the current market price.
Adding to the market pressure, Diamond Properties, a company linked to Novaland Chairman Bui Cao Nhat Quan, registered to sell 2,7 million shares. This move was cited as a measure to rebalance its investment portfolio.
The sharp fluctuations in NVL stock during the first session this week placed it among the 10 codes with the most negative impact on the VN-Index. The benchmark index for the Ho Chi Minh City Stock Exchange (HSX) closed at 1,780 points, down 4 points from its reference. Concurrently, the VN30, representing large-cap stocks, plunged by 16 points due to intense selling pressure across many leading industry stocks.
According to analysts at MB Securities, the VN-Index's recovery trend, which began in late july, has been broken. The index fell below the crucial trend line around 1,800 points and is now trading below significant moving averages, including the MA100 and MA200. This technical breakdown is generating further selling pressure among investors.
The HSX was dominated by red, with nearly 220 codes declining, double the number of advancing stocks. Beyond Novaland, several other codes, such as PNJ and KOS, also hit their floor prices. Investor caution, fueled by negative corporate news, led to these codes closing with no buyers and millions of shares still available for sale.
The securities sector faced the strongest supply pressure. Most component stocks closed below their reference prices, with major players like HCM, VND, SSI, and TCX experiencing declines of over 2,5%.
In the banking sector, SSB continued to correct after a rapid mid-month surge, falling over 3% and breaching the 19,000 dong mark. LPB, VIB, ACB, and TCB followed with declines ranging from 1,2-2%.
The oil and gas sector was the best performer, buoyed by a rebound in crude oil prices. This surge followed reports that Trump rejected a peace proposal and Iran reopened the Hormuz Strait. BSR increased by 6,6% to 32,400 dong, becoming one of the largest contributors to the VN-Index's performance. Other key stocks like GAS, PLX, and PVT reversed their earlier declines to register gains of over 1,5%.
Market liquidity stood at approximately 15,000 billion dong, showing little change from last weekend. TCB led in matched trading value, recording 705 billion dong.
Foreign investors continued to signal weak sentiment, extending their net-selling streak to four consecutive sessions. This group disbursed less than 1,400 billion dong while selling off approximately 1,660 billion dong.
Phuong Dong
