An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.
Listed companies’ second quarter profits fell on average by 14.4 percent year-on-year, with tourism and oil being the worst hit.
The revenues of 826 companies that have published their results so far and account for 94 percent of the total market capitalization of the country’s three exchanges, fell 16.5 percent, according to a report by stock brokerage VNDirect.
The tourism and aviation sectors together saw the biggest fall in profits of 494.8 percent as international flights are banned and major tourist hotspots were closed for three weeks at the beginning of the quarter.
Oil and fuel companies’ profits plummeted by 78.5 percent as crude oil prices dropped by half from a year earlier and many people worked from home, reducing the demand for fuel.
Property companies reported a 29.3 percent fall as sales events were canceled and trading floors were closed to limit the spread of Covid-19.
Banks reported 21.9 percent growth thanks to their efforts to cut costs. They also contributed the highest proportion of profits to the market with 6.2 percent.
Financial services, mostly comprising stock brokerages, saw profits surge by 341.1 percent as the markets posted a V-shaped recovery after a first quarter slump.
VNDirect analysts said that in the second half of the year uncertainties caused by the growing Covid-19 infection and deaths in Vietnam and U.S.-China tensions could affect the market.
It forecast a 5-6 percent fall in profits for listed companies on the country’s main bourse, the Ho Chi Minh City Stock Exchange.