Cash flow to the stock market, major investors loosen their purse strings

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VIBank said Tran Nhat Minh, the bank’s deputy managing director, signed up to buy 2 million VIB shares from Nov. 21 to Dec. 20, to increase his ownership ratio.

On November 14, Ho Van Long, another deputy general manager of the bank, also signed up to buy 1.5 million VIB shares.

The two senior bank executives signed up to buy shares after the bank submitted a high cash dividend payout plan. VIBBank reported a sharp rise in third-quarter earnings and the lowest price so far this year.

With the current price of 18,000 VND per share, they would have to pay around 63 billion VND to acquire the shares they want.

Analysts say senior executives at many companies buy stocks in large quantities when stock prices fall, which has recently seen rare low price levels.

After Duc Giang Chemicals (DGC) shares fell 62% from VND140,000 in mid-June to VND53,200 on November 15, Chairman Dao Huu Huyen signed up to buy 1 million additional DGC shares from November 17 to December 16 as part of a plan to raise its ownership ratio to 18.38%. DucGiang’s capitalization value has lost $1.2 billion in the past five months.

HOSE reported that Tran Huy Thanh Tung, CEO of Mobile World (MWG), successfully acquired 500,000 MWG shares, raising his ownership ratio to 11.1 million units. Amersham Industries Limited bought 9.25 million KDH shares from Nha Khang Dien, while Vietnam Enterprise Investment Limited 9.75% of KDH shares and Vietnam Equity Fund 1 million shares from PetroVietnam Drilling (PVD).

Luong Tri Thin, Chairman of DatXanh Group (DXG), has successfully acquired 15 million shares of DXG.

Amid the steep decline in the stock market, foreign investors are buying more than they are selling with a net purchase of VND 6.8 trillion in the first half of November. They mainly focused on bank stocks.

Low stock prices, stable macroeconomic conditions, high GDP growth rate, low inflation rate and stable exchange rate are the reasons why investors buy stocks.

On November 16, the VN index rose 31 points at the end of the trading session after falling 38 points to 870 points in the morning of the same day.

CSI said the reversal brought a breath of fresh air to the stock market. The corresponding volume on November 16 was the highest in the last seven months.

Duy Anh

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