VietNamNet Bridge – The stock market last week witnessed big
fluctuations with rapid fire information about the Dang family, one of the most
powerful families in the Vietnamese business circle.
Resigning, losing money
All the three shares relating
directly to the Dang Van Thanh’s family saw the sharp falls in prices on
November 2.
The morning closing price of SCR
shares of the Saigon Thuong Tin Real Estate Joint Stock Company, whose Thanh’s
son Dang Hong Anh is the President, fell by 7 percent, with the prices traded
at 5100 dong per share.
SBT shares of Bourbon Tay Ninh,
where the Chair of the Board of Directors is Thanh’s daughter, also saw the
prices falling to the floor prices.
STB shares of Sacombank, one of
the biggest commercial banks in Vietnam, were bargained away early in the
morning of November 2, before the prices regained a little at the end of the
trading session.
The prices of the shares relating
to the Dang family have dropped sharply after Dang Hong Anh sold 21.45 million
SCR, earning 113.6 billion dong, and the “sugar Queen” Huynh Bich Ngoc, the
mother of Anh and wife of Thanh, unexpected resigned from the post in Bourbon
Tay Ninh Sugar Company’s board of directors.
Anh, after the sale of the 21.45
million shares, now holds 14,157,000 shares, or just 9.9 percent of the
company’s stakes.
The information about the main
listing in the top 15 Vietnamese stock millionaires who sold a big amount of
shares has raised doubts about the bad business performance of the company.
Thanh’s daughter Dang Huynh Uc My
has been put on the top position of Bourbon Tay Ninh after the resignation of
her mother. However, the recent happenings with the Dang family and the
“abnormal” negotiable transactions of Eximbank’s shares (EIB) and Sacombank
shares (STB) both have caught the special attention from the public.
In late afternoon of November 2,
Dang Van Thanh, President of Sacombank, announced the resignation from the
post, leaving from the bank where he spent years to build and develop.
Stock market awaits new fluctuations
Not only the shares relating to
Dang family, but most of the other shares listed on the HCM City and Hanoi
bourses fell dramatically on November 2. The investors ran away from the
market, leading to the VN Index losing 13 points (3.3 percent), while the HNX
Index has decreased by 3.04 percent.
The HNX30 of the 30 shares with
highest liquidity levels on the Hanoi bourse has decreased by 4.3 percent.
What happened in the stock market
on November 2 had similar things with what happened on August 21, when Mogul
Kien was arrested. The only different thing was that the share prices on
November 2 were much lower than that in August.
Investors have been hurrying away
because they cannot understand what is happening in the market. Why did Thanh’s
son have to sell over 21 million shares? Why did Ngoc leave the sugar companies?
Are there any links between the recent abnormal transactions of EIB and STB
with Thanh’s family?
The questions remain unanswered
to investors. Meanwhile, analysts have commented in a market with the lack of
information, it is the small investors who will suffer the most.
However, the investors know for
sure that the happenings with big enterprises and the “big names” in the market
would lead to a lot of changes in the stock market. Therefore, they now keep
waiting to see what the changes will be.
Huan Tu
Business & Investment Opportunities
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