PNJ shares opened at the floor price of 47.250 dong but quickly narrowed their decline. Proactive buy orders for nearly 7 million shares helped the stock recover. At one point, PNJ was down only 1% from its reference price, trading around 50.000 dong.

By 10h15, the market price hovered around 49.000 dong. Trading volume exceeded 17 million shares, with a transaction value of 830 billion dong, leading the Ho Chi Minh City Stock Exchange. This marks PNJ's highest trading volume in several years. The morning's activity suggests that buyers absorbed the large volume of shares that were previously waiting to be sold at the floor price.

The stock's recent three-session plunge was triggered by an incident involving a former director of PNJ's subsidiary, P-Lab. This individual was linked to a smuggling ring involving 28.000 diamonds. Since the news broke, PNJ's stock price has fallen by approximately 20%, resulting in a market capitalization loss of 7.700 billion dong.

PNJ stock chart over one year, as of the morning of 8/7. Screenshot

PNJ has provided continuous updates on the situation. During an investor meeting on 6/7, Cao Thi Ngoc Dung, Chairwoman of the Board of Directors, affirmed that smuggled diamonds did not enter the company's retail system. She also indicated that the leadership is considering share buybacks to protect the company's value and shareholder interests if needed.

The company also announced the formation of a special oversight team at P-Lab, including two independent board members. This team aims to enhance operational monitoring at P-Lab and strengthen internal control systems. PNJ's leadership stated in a document sent to the Ho Chi Minh City Stock Exchange on the afternoon of 7/7 that "all PNJ operations are maintaining stability."

The sharp stock correction prompted many securities companies to tighten margin lending ratios for PNJ shares. FPTS reduced its margin ratio from 50% to 30% today, while SSI lowered its from 50% to 40%. Other firms, such as Phu Hung and TCBS, have removed PNJ from their margin lending lists, despite previous ratios of up to 50%.

In a report released on 6/7, SSI's analysis team noted insufficient grounds for a reliable valuation or target price for PNJ shares. Consequently, they temporarily placed PNJ shares "under review" pending further information from both regulatory authorities and the company. SSI also predicted a short-term impact on PNJ's retail revenue, revising its after-tax profit forecast down from 3.569 billion dong to 3.333 billion dong.

"While the profit adjustment is not substantial, the market's focus has shifted from profit risk to trust risk," SSI's report highlighted. ACB Securities Company's analysis team echoed this sentiment, emphasizing that PNJ's primary challenge is restoring customer and investor confidence in its corporate governance. They warned that if trust isn't regained, or if the investigation reveals more severe company-related issues, the situation could become harder to manage.

Phuong Dong