Steelmaker Nam Kim shares dragged down by investor sentiment: company

Nam Kim Steel JSC, a galvanized steel sheet producer, says it cannot control the fall of its share price for five consecutive sessions because it was caused by investor sentiment.

Nam Kim Steel JSC, a galvanized steel sheet producer, says it cannot control the fall of its share price for five consecutive sessions because it was caused by investor sentiment.

The company (trading code: NKG) said in a letter sent to the Ho Chi Minh City Stock Exchange (HoSE) that the stock had hit its floor prices also due to macroeconomic conditions.

Nam Kim Steel JSC's factory in Dong An 2 Industrial Park, Thu Dau Mot town, Binh Duong province, southern Vietnam. Photo courtesy of the company.

The NKG share recorded its sixth consecutive dropping session last Friday to VND8,410 ($0.34).

In just six trading sessions, NKG shares fell below par value for a loss of nearly 35%. Compared to its peak at the end of March 2022, the market price of Nam Kim Steel has "evaporated" by up to 80%.

In the third quarter of the year, NKG's net revenues were VND4,424 billion ($178.9 million), down 41% year-on-year. It reported a loss VND419 billion ($16.94 million) against profits of VND607 billion ($24.54 million) in the same period last year.

In the first nine months of the year, the company recorded net revenues of VND18,771 billion ($759 million) and after-tax profits of nearly VND290 billion ($11.72 million), down 3.2% and 83.6% year-on-year, respectively.

By September 30, 2022, the company's total assets reached more than VND15,860 billion ($641 million), up VND462 billion ($18.68 million) compared to the beginning of the year.

Previously, on November 10, major Vietnamese real estate developer Novaland said the price of its shares had fallen for five consecutive sessions due to market sentiment and macroeconomic conditions.