VietNamNet Bridge – Twenty sale transactions have been carried
out or registered by the big shareholders just within one month. Especially,
the amounts of shares offered on sale for every trading deal were very big -
millions or tens of millions of shares.
A lot of the VIP shareholders,
who were the members of the board of directors or board of management, have
registered to sell their shares recently.
In early July, Do Van Trac, Chair
of Truong Phu Joint Stock Company (TGP – UpCom) successfully sold one million
TGP shares.
One week later, Le Xuan Hai,
Chair of the Ninh Van Bay Real Estate and Tourism Company (NVT – HOSE),
registered the sale of 3.7 million shares. The move was explained as aiming to
“balance personal financial demand.”
Also in July, Nguyen Hoang Long,
Deputy Chair of Au Viet Securities Company (AVS – HNX) also registered to sell
900,000 shares.
Dang Thanh Tam, a well-known
businessman in Vietnam with its name listed among the richest stock
millionaires in Vietnam, surprised many people when he unexpectedly decided to
sell 22 million shares of the Saigon – Quy Nhon Mineral Corporation (SQC – HNX)
worth 1400 billion dong.
The move by Tam was a surprise to
investors because SQC reportedly made a fat profit in the first half of the
year, while investors believed that the prices of the shares would continue
rising.
Especially, Tam is the elder
brother of Dang Thi Hoang Phuong, Chair of SQC. The decision by Tam was
released after SQC announced the impressive profit of 86 billion dong, which
was 162 percent higher than that of the same period of the last year
Also in July, IPA--an investment
group, which has relations with a member of the board of directors of VNDirect
Securities Company (VND – HNX), also sold 5 million shares. The Green City
Development Joint Stock Company managed by Deputy General Director of Vingroup
Hoang Bach Duong sold 4 million VIC shares to take back the investment capital.
In August, Nguyen Khac Lac, a
member of the board of directors of AVS, sold 1.6 million shares of the company
more, thus reducing his ownership ratio in the company to 0.28 percent.
In March 2012, AVS was given
warning for its unprofitable business performance which began in 2011.
Bui Tuan Ngoc, Chair of TMS, a
freight and forwarding company, has also sold 1.76 million shares, or 9.65
percent of the total number of shares now in circulation.
Commenting about the movement,
Nguyen Viet Duc, Research & Analysis Director of SHF, believes that in
general, the sale of stakes in big quantities shows negative signs in the
operation of enterprises, or the loosened attachment of the managers to the
enterprises.
Duc also said that in many cases,
big shareholders or managers sell stakes because they want to narrow the
operation scale or to get money for other investment projects.
“Businessmen invest in many
different business fields, and then they would sell the shares to make profit
and to gather their strength on their main business fields,” Duc commented.
Meanwhile, some investors have
expressed their worry that big shareholders sell stakes to make profit, while
they do not intend to make long term investment in the enterprises.
The stock market once witnessed
the sale of stocks in massive scale in 2007. However, the situation then was
quite different from now. At that time, investors sold shares because the
market was scorching hot, which allowed them to have good prices.
Meanwhile, investors now decide
to sell shares because they want to restructure the investment portfolios in
the current economic difficulties.
Compiled by Thu Uyen
Business & Investment Opportunities
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