People related to business leaders rush to buy

Information from Masan Group Corporation (MSN) said that Ms. Nguyen Yen Linh, daughter of billionaire Nguyen Dang Quang - Chairman of Masan, spent about 600 billion VND to successfully buy nearly 8.5 million shares, out of a total of 10 million units previously registered to buy, equivalent to about 85%. The transaction period was from October 29 to November 18. After the transaction, Ms. Nguyen Yen Linh owned nearly 8.5 million MSN shares, equivalent to 0.59% of capital.

This is a notable transaction in the context of Masan shares falling quite sharply over the past month, from over VND 81,000/share to below VND 70,000/share. Masan has also repeatedly stated that the share price has fallen much lower than the real value and potential of MSN. Previously, at the end of 2021, MSN was at times up to over VND 140,000/share (adjusted price). Many foreign organizations assessed that MSN could reach VND 180,000-190,000/share...

Ms. Nguyen Thi Hai, wife of Chairman of 911 Group (NO1) Luu Dinh Tuan, has just bought 763,500 shares, between October 15 and November 13, increasing her ownership to 1,747,900 shares (7.28% of charter capital), becoming a major shareholder of the enterprise.

At TNG Investment and Trading Joint Stock Company (TNG), Board member and General Director Nguyen Duc Manh registered to buy 1 million shares, through negotiation and order matching from December 2-30. Currently, Mr. Manh holds about 9.8 million shares (equivalent to 8.01%). If the transaction is successful, Mr. Manh will hold up to 19.8 million shares.

Mr. Le Hai Doan, Chairman of the Board of Directors of HIPT Group Corporation (HIG), also registered to buy 1 million shares from November 21 to December 20 for investment purposes. If the transaction is completed, Mr. Doan will increase his ownership to more than 10.6 million shares, a ratio of 47%.

Mr. Le Van Tan, Chairman of the Board of Directors of Lam Son Sugarcane Joint Stock Company (LSS), registered to buy 500,000 shares from November 22 to December 21. After the transaction is completed, Mr. Tan will increase his ownership to nearly 4.34 million shares (5.41%).

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The stock market has been gloomy and bearish recently. Photo: HH

Before Mr. Tan, Mr. Le Trung Thanh, Vice Chairman of the Board of Directors, bought 2.65 million shares out of a total of 3 million registered shares from October 2 to October 31, increasing his ownership to more than 4.54 million shares, a rate of 5.67%.

Vinhomes JSC (VHM) of billionaire Pham Nhat Vuong has just spent about VND10,700 billion to buy back nearly 247 million shares as treasury shares. The number of shares VHM bought back is equal to 66.75% of the total number initially registered.

On the bank side, there has also been a lot of buying information. Ms. Dang Thi Thu Ha, wife of Vice Chairman of the Board of Directors of Vietnam International Commercial Joint Stock Bank ( VIB ) Dang Van Son, registered to buy 10 million shares from November 27 to December 26. If successful, Mr. Son's wife will increase her ownership at VIB to 81.6 million shares, equivalent to 3.215% of capital (excluding 12.2 million bonus shares for existing shareholders waiting to return). Ms. Dang Minh Ngoc, Mr. Son's daughter, has registered to buy 4 million shares, which if successful will increase her ownership to nearly 8.07 million shares, equivalent to 0.318% (excluding 691,254 bonus shares for existing shareholders waiting to return).

Mr. Pham Quoc Thanh, Member of the Board of Directors, General Director of Ho Chi Minh City Development Joint Stock Commercial Bank - HDBank (HDB) has just announced his registration to buy 1 million shares, from November 18 to December 16. Currently, Mr. Thanh holds more than 5.8 million shares, accounting for 0.199%.

What is happening?

The phenomenon of wives and children of tycoons, big bosses and related people at businesses and banks racing to buy and register to buy stocks in the context of a gloomy stock market, not yet out of the downward trend... is not uncommon in the past.

The number of transactions is quite large and urgent, but not large compared to the scale of thousands of businesses on the stock exchange.

The fact that big bosses and related people buy and sell stocks may be because each business has its own story, and it may also be because leaders see positive prospects for the economy in general, for businesses and the stock market in particular.

It could be the story of NO1's breakthrough prospect when switching to buying a large number of VinFast cars to establish a taxi company, or Masan's breakthrough in the consumer and retail sectors along with the story of completing the search for a new foreign investor for the capital withdrawal deal of SK Group Korea...

At VIB Bank, it may be related to the divestment story of strategic shareholder Commonwealth Bank of Australia. At Vinhomes, the story of buying treasury shares may be due to the price being too low, or it may also be related to foreign investors selling.

However, it is a fact that many experts have mentioned that the stock market is not always a measure of the health of the economy. The stock market often depends heavily on cash flow. When cash flow is tight and withdrawn, even if the economic outlook or business health is good, it is difficult to reverse the downward trend.

Recently, many businesses that are assessed to have good prospects such as FPT, DGC, MSN… have been under strong downward pressure following the market.

Currently, the stock market has very low liquidity. Foreign investors have withdrawn a record 85 trillion VND since the beginning of the year due to the sharp increase in the USD/VND exchange rate, the difference in Vietnam's interest rates compared to the world...

Domestically, margin lending at securities companies has continuously set records, reaching 9.2 billion USD, but money entering the stock market is very low. Liquidity is sluggish, around 10-15 trillion VND. There are signs that businesses can borrow to repay bond debt. Previously, statistics showed that the peak bond maturity was at the end of 2024.

As large cash flows are withdrawn, while individual investors remain cautious, and deposits in the banking system continue to rise to record levels, a downward trend in stock prices is inevitable.

However, the most difficult time, the most exhausted liquidity can also be a signal that the market has bottomed out. The stock market may not go up immediately, but it is still an opportunity to buy and hold, especially for long-term investors such as business leaders, their wives and children, and those related to business leaders, and especially businesses with their own plans and strategies.

Amending the Securities Law to upgrade the market, welcoming billion-dollar capital flows The amended Securities Law replacing the 2019 law will focus on upgrading the stock market, improving the efficiency of capital mobilization and clearly defining responsibilities for violations in the market.