The VN-Index closed at a record high of 1,688 points on 21/8, having risen over 23% in the past two months. This favorable market has spurred trading activity among individual and institutional investors, as well as company executives.
On the buying side, executives at VPBank (Vietnam Prosperity Joint-Stock Commercial Bank) are planning several large transactions. Bui Cam Thi and Bui Hai Ngan, daughters of VPBank Vice Chairman Bui Hai Quan, have registered to buy 20 million shares each between 25/8 and 23/9. The total investment is estimated at around 1,500 billion VND.
VPBank board member Pham Thi Nhung also plans to purchase 10 million shares, worth nearly 400 billion VND, between 26/8 and 24/9.
At Seabank, Vice Chairwoman Nguyen Thi Nga registered to acquire over 3 million SSB shares, increasing her ownership in the bank to 4.22%. Conversely, her son, Le Tuan Anh, plans to sell over 3 million Seabank shares.
Similarly, at NamABank, Tran Kieu Thuong, sister of Vice Chairman Tran Ngoc Tam, completed the purchase of over 1 million NAB shares in the first half of August.
VPB, SSB, and NAB have been strong performers in the banking sector, contributing to the industry's price surge. SSB's market price has increased by 21.5% since the beginning of August. NAB shares are trading around 15,700 VND, a 20% increase over the past month.
VPBank's VPB shares have doubled in value since June, reaching 38,600 VND per share after two years of stagnation.
Another notable transaction involves Doan Hoang Nam, son of Hoang Anh Gia Lai Chairman Doan Nguyen Duc, who intends to buy 27 million HAG shares. In contrast, Duc has registered to sell 25 million shares of the corporation. HAG shares reached a 10-year high of 16,850 VND at yesterday's close, marking a 40% increase over the past 8 months.
Insider buying reinforces investor confidence, contributing to the stock's upward momentum.
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Investors trade at a securities company in District 1, Ho Chi Minh City, 3/2021. Photo: Quynh Tran |
Investors trade at a securities company in District 1, Ho Chi Minh City, 3/2021. Photo: Quynh Tran
Several large sell orders from company executives are also being observed. Saigon - Hanoi Securities Joint Stock Company (SHS) has registered to sell 20 million SHB shares between 21/8 and 17/9 through block trades on the exchange.
SHS is an entity related to Do Quang Vinh, Vice Chairman of SHB. At the close of trading on 21/8, SHB shares were priced at 18,500 VND per share, double their value at the start of the year.
Previously, SHS also planned to sell 1.36 million PMC shares (equivalent to 14.6% of the charter capital) of Pharmedic Pharmaceutical Materials Joint Stock Company through block trades between mid-August and September.
At Dat Xanh Group, some executives have registered to divest their capital in August. Ha Duc Hieu, a member of Dat Xanh's board of directors, registered to sell nearly 6.4 million DXG shares between 4/8 and 1/9. CEO Bui Ngoc Duc and Deputy General Director Do Thi Thai also plan to sell almost all of their holdings.
This increased trading activity by company executives and related parties during a market upturn is similar to the trend seen in 2011, when they bought shares to "ride the wave." At that time, the VN-Index rose by 36%.
However, according to Fiin Pro, a financial and stock market data platform, insiders and related parties net sold nearly 17,000 billion VND in 2021. This suggests that when the market overheats and stock prices peak, company executives and related parties take advantage of the opportunity to take profits, restructure their portfolios, or address personal financial needs.
Speaking to VnExpress about the current situation, Nguyen The Minh, Director of Yuanta Vietnam Securities' Retail Research and Development Division, believes the recent increase in trading activity by company executives and related parties is normal.
The expert suggests that insiders are buying shares even after substantial price increases because they are optimistic about the companies' growth and want to maximize profits. "More than anyone, these executives understand their businesses best," Minh emphasized.
He also notes that when stock prices reach reasonable levels, many executives choose to sell to address personal financial needs, as seen in cases at Dat Xanh and The Gioi Di Dong.
Since the start of the year, the Ho Chi Minh City Stock Exchange (HoSE)'s benchmark index has risen by nearly 33%. According to HoSE statistics, the average daily trading volume on the exchange has reached over 51,000 billion VND this month, more than double last year's figure. Market capitalization is approximately 9 million billion VND, an all-time high, equivalent to about 70% of GDP.
Trong Hieu
