How did 'APEC family' stocks once make waves?

During the market boom at the end of 2021, three "APEC family" codes increased at the same rate as the Louis or FLC groups, even more than ten times after only three months.

Hanoi police have just initiated a case to investigate the act of stock manipulation with three stock codes API of Asia Pacific Investment Joint Stock Company, IDJ of IDJ Vietnam Investment Joint Stock Company and APS of Asia Pacific Securities Joint Stock Company.

The common point of the above group is that they are all companies related to APEC Group (APS and API are member companies, and IDJ is an affiliated company). Another common point is the "stormy" performance of these three codes.

Before 2020, APS and IDJ were classified as penny stocks, with the lowest market price on the HNX floor when they only traded around 1,000-2,000 VND. API fluctuated more strongly when it exceeded its par value in the 2017-2019 period, then also decreased to below 5,000 VND at the end of 2020.

However, just one year later, this group became a phenomenon in the market. Along with the increase of VN-Index, many stocks recorded double-digit increases. In particular, the API, APS and IDJ groups recorded many times the increase after a short time. The time when the group of stocks related to APEC Group was noticed was also the same time as the sublimation of FLC group codes or "Louis family".

From August to November 2021, API shares increased from the price range of 7,600 VND to nearly 50,000 VND, IDJ increased from 7,500 VND to more than 42,000 VND, and APS also increased dramatically many times. If calculated from the beginning of 2021 and the price before adjustment due to additional issuance, the increase of this group reached more than 10 times.

At the end of November 2021, at the annual shareholders' meeting of Apec Securities (APS), Mr. Nguyen Do Lang, General Director of APS, said that the reason why the company's stock in particular and the APEC group in general increased sharply was due to "heavenly time, favorable location, and harmony between people".

In particular, the "geographical advantage" factor is emphasized because companies in the APEC Group ecosystem have very large land funds and the stock prices of these companies also increase sharply.

Mr. Nguyen Quang Huy, a member of the APS Board of Directors at that time, also called on shareholders to include the phrase "earning profits" in the company's slogan alongside other verbs such as "creativity", "dedication", "service" or "determination".

However, after a strong increase, this group simultaneously adjusted along with the market's deep decline. Continuously since the beginning of last year, when the market plummeted after news of prosecutions for stock manipulation cases, API, APS and IDJ also continuously found new bottoms.

A year later, API was even lower than the price before the increase, only 5,500 VND. APS also fell from a peak of nearly 60,000 VND to its lowest level in mid-November 2022, to more than 4,000 VND per share. IDJ's market price also divided 10 times from its peak at the end of 2021.

However, in the second quarter of this year, this group once again attracted attention when it became the focus of many groups on social networks. Arguments about expectations for the real estate sector or the possibility of strong growth like the previous period were mentioned. From March to early June this year, the market prices of API, APS, IDJ nearly doubled.

In the last trading session of last week, June 23, three stocks of the "APEC family" all remained green, with API increasing 3.3%, IDJ 3.1% and APS 2.9%.

One day after the police announced the initiation of a case to investigate stock manipulation with three stock codes API, IDJ and APS, these three companies simultaneously announced information confirming that they were not related entities.

According to these businesses, the incident has absolutely no impact or change on the long-term orientations or normal operations of API, APS and IDJ. The legitimate rights and interests of customers, shareholders and partners are being guaranteed.

The State Securities Commission also said that the case was an isolated incident involving a number of organizations and individuals. The Vietnamese stock market is still operating normally, stably, and smoothly. The agency has requested the three companies to disclose information and report to the State Securities Commission and the Stock Exchange according to regulations.

Minh Son

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