Total net profit of listed businesses falls by 14.4pct

06-Aug-2020 Intellasia | Dau tu Online | 6:02 AM Print This Post

The total net profit of enterprises listed on three exchanges (Hochiminh Stock Exchange HOSE, Hanoi Stock Exchange HNX, Unlisted Public Company Market UPCoM) decreased by 14.4 percent compared to the same period in the second quarter of 2020, according to an analysis by VNDIRECT Securities Joint Stock Company.

In particular, there are three industries most impacted by the pandemic including oil and gas, tourism and retail.

Vietnam implemented 21 days of nationwide social distancing in April, almost completely disrupting service and transportation activities. The transport and tourism sectors suffered heavy losses, causing businesses in these two industries to receive a 73.3 percent and 493.8 percent profit decline in the second quarter of 2020 compared to the same period.

The retail industry recorded a decline in profit of 40.5 percent in the second quarter of 2020 in the context of weak domestic demand while the profit of the petroleum industry decreased by 78.5 percent over the same period due to the price of Brent crude oil was down (-51 percent over the same period).

Meanwhile, banks are considered as the backbone of the market profit when the profit of banking industry grew by 21.9 percent over the same period in the second quarter of 2020, much higher than an increase of 3.4 percent in the first quarter of 2020.

Positive growth came from profits of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) (code: CTG), HCM City Development Joint Stock Commercial Bank (HDBank) (code: HDB) and Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) (code: VPB) when increasing by 102%, 54 percent and 44 percent over the same period respectively.

In the first 6 months of 2020, the profit of the banking industry rose by 12.6 percent over the same period, contributing 3.8 percentage points to the overall market’s profit growth.

In the second half of 2020, VNDIRECT realised that the market was increasing uncertain factors such as the second Covid-19 outbreak and the US-China trade war.

After nearly 100 days without a community-acquired infection, new cases were reported from Da Nang at the end of July 2020, causing social distancing to be re-applied in some localities.

However, the VNDIRECT analysis team said that there are still factors that can support the market coming from promoting public investment to rebuild the national economy in 2020, a sign of the return of foreign cash flows and loose monetary policy may lead money flow back to the stock market.

 


Category: Stocks, Vietnam

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