Vietnam Airlines is among 51 stocks that had been barred from margin lending in the second quarter, according to the Ho Chi Minh Stock Exchange (HoSE).
Vietnam Airlines staff clear an aircraft before taking off during the COVID-19 pandemic.
The decision came after the state auditor did not fully accept Vietnam Airlines’ financial report for the first six months of 2019.
Specifically, the auditor opposed that the aviation firm recorded a VND170 billion (US$7.2 million) loss in the exchange rate between the Vietnamese dong and the US dollar on August 14.
The calculation was based on the directors’ forecast of the VND/USD exchange rate at the end of 2019, which is not allowed by Viet Nam’s accounting regulations.
Vietnam Airlines shares were put on the list of legible stocks for margin lending in the first quarter after they had been traded for more than six months.
According to the Committee for Management of State Capital at Enterprises, Vietnam Airlines is one of the corporations worst-hit by COVID-19.
From January-March, total revenue was estimated at VND19.2 trillion, down 26 per cent on-year. The company suffered a loss of VND2.38 trillion.
If the disease is not under control soon, the company’s total revenue may fall 34 per cent on-year to VND38 trillion in 2020. And it will post a loss of VND19.65 trillion.
Vietnam Airlines shares (HoSE: HVN) were down 3.4 per cent to trade at VND19,600 apiece on Wednesday.
Among other stocks on the HoSE's list are Agribank Securities Co (AGR), brewer Habeco (BHN), Dien Quang Lamp JSC (DQC), the Vietnam Rubber Group (GVR), agriculture firms Hoang Anh Gia Lai (HAG) and HALG Agrico (HNG), Vietnam-Italy Steel JSC (VIS) and media group Yeah1 (YEG). – VNS
With 40 aircrafts left idle, about 200 pilots of Vietnam Airlines have had few flight hours.
Vietnam Airlines will lose some VND50trn (USD2.1bn) in revenues while 10,000 staff are without work due to the Covid-19 outbreak.