Novaland's head office in HCM City. The property developer's shares hit the maximum daily gain of 7 per cent on Tuesday, contributing to the market's recovery. Photo baodautu.vn

HÀ NỘI — The stock market witnessed a reversal in its fortunes during Tuesday’s afternoon session as positive news related to the real estate market lifted realty stocks.

On the Hồ Chí Minh Stock Exchange, the VN-Index increased by 0.39 per cent to close at 1,069.46 points despite having traded below the baseline throughout the entire morning. The southern market’s index decreased 0.4 per cent on Monday.

Real estate stocks experienced a significant rebound after dropping earlier in the day, led by Novaland Group (NVL) and Vinhomes (VHM).

In the morning, NVL suffered a decline of 3.8 per cent but rebounded in the early afternoon and eventually closed at the highest price of VNĐ14,200 (US$0.60) per share, up 7 per cent with over 63 million shares changing hands, the highest in the past four months.

This surge came in response to the news that on Tuesday, Nguyễn Cao Lục, Deputy Chairman of the Government’s Office, signed a directive conveying Deputy Prime Minister Trần Hồng Hà's instructions to the Ministry of Construction, Ministry of Natural Resources and Environment and People's Committees of Đồng Nai and Bình Thuận provinces. The directive calls for relevant ministries to collaborate with the provincial committees to resolve the problems and difficulties faced by Novaland's projects in those regions, in accordance with the law. 

Novaland, amid a difficult financial situation, has requested support from the Government and the State Bank of Việt Nam to overcome these challenges. The company's Chairman Bùi Thành Nhơn has asked for regulations that would allow banks to relax, postpone, or hold debt groups for real estate projects for 2-3 years, as well as tackle legal bottlenecks for its projects throughout the country.

According to Novaland's leader, the company has VNĐ25 trillion ($1.1 billion) blocked at commercial banks, with over VNĐ10 trillion being eligible for release once legal proceedings are complete. Resolving this issue would provide Novaland with the necessary capital to continue operating normally.

Apart from Novaland, Vinhomes (VHM) also surged 3.4 per cent, leading the top shares lifting the VN-Index most. Other stocks like Development Investment Group (DIG), Đất Xanh Group (DXS), Sài Gòn Thương Tín Real Estate (SCR) and Hải Phát Investment (HPX) all saw impressive increases.

However, despite the Index’s rise, liquidity in HCM City's bourse decreased 19 per cent in volume and 23 per cent in value from the previous session, totaling 698 million shares worth VNĐ11.6 trillion ($491.5 million).

On the Hà Nội Stock Exchange, the HNX-Index rose for a second day, up 0.16 per cent to end at 212.34 points. Liquidity also dropped here to 114 million shares worth VNĐ1.7 trillion, down 30 per cent in volume and 24 per cent in value compared to Monday’s levels. — VNS