|
Top-dog sales could hurt local markets
The recent announcement by many executives and major shareholders of listed companies that they will sell their holdings could rattle smaller investors and negatively impact the market, analysts say.
A Securities & Investment magazine's report published last week said Dinh Hong Long, chairman and CEO of the Ha Noi General Investment Corp (SHN), has registered to sell his entire holding of 200,000 shares, equivalent to 0.62 per cent of the company's charter capital, between May 27 and June 27.
In a filing with the Ha Noi Stock Exchange, he said the sale aimed to serve his personal financial needs. SHN's prices have climbed strongly since March, more than tripling from VND3,200 (US$0.15) a share early in March to VND10,300 ($0.47) each yesterday.
The magazine cited unnamed analysts as saying it was highly unusual and unreasonable to see a leader sell all of his company's shares when their prices have been rising consistently of late. They said this move raised questions about people acting on internal information that only company leaders are privy to.
SHN is facing the risk of being de-listed as its cumulative losses until last year amounted to almost VND327 billion ($15.1 million), exceeding its charter capital of VND324.5 billion ($15 million). At the same time, Nguyen Hong Phuong, a board member of the Cuu Long Petro Urban Development & Investment Co (CCL), also announced the sale of his entire holding of over 1.4 million shares, or 5.64 per cent of the company's charter capital. Besides company leaders, institutional shareholders of many companies have also said they will sell their stakes.
The Vinaphil Infrastructure Investment Co has registered to sell 22.3 million shares of HCM City Infrastructure Investment Co (CII), equivalent to 11.42 per cent of CII's capital, from June 3 to July 2, just a day after it sold 10 million CII shares.
bizhub
|
