Powerful Dang family’s upheavals create big changes in stock market
05-11-2012 13:03:34+07:00
Powerful Dang family’s upheavals create big changes in stock market
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.
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.
vietnamnet
