The Vietnamese stock market has lost $30 billion worth of capitalization value in the last two weeks.

However, some shares have begun ‘swimming against the current’ in recent trading sessions, including Gemadept, Vietnam Electric Equipment, Sao Ta and PAN Group.

While most shares saw prices sliding last week, the shares of these companies increased. This was because the four companies announced a plan to buy back tens of million of shares from the market.

The total amount of money the enterprises plan to use to buy treasury stocks may be up to trillions of dong. PAN intends to buy up to 10 percent of shares in circulation, about 21.6 million shares.

The total amount of money the enterprises plan to use to buy treasury stocks may be up to trillions of dong. PAN intends to buy up to 10 percent of shares in circulation, about 21.6 million shares.

After several trading sessions which witnessed sharp falls in share prices, a series of enterprises are rushing to buy treasury stocks. At least six companies have made similar moves, from banks (TP Bank) to real estate firms (Dat Phuong Group, Ba Ria-Vung Tau Housing Development) to yarn manufacturers (Soi The Ky).

The Ba Ria-Vung Tau Housing Development has approved a plan to buy 2 million shares in Q2. Cuong Thuan Idico plans to buy 15.7 million shares, VRC Real Estate and Investment 10 million shares, or 20 percent of total shares in circulation.

Explaining their moves, enterprises said market share prices are lower than the real value, so buying treasury stock is a reasonable step to protect the benefits of enterprises and shareholders.

In some cases, the positive effects can be seen even before the purchases are made.

Appropriate agencies have also begun taking actions to support the stock market. Tran Van Dung, chair of the State Securities Commission (SSC), said it now takes one day to follow the procedures to buy treasury stocks instead of seven days.

Phan Dung Khanh from Maybank Kim Eng Securities said spending money to buy treasury stocks is a natural action at this moment.

Major shareholders and related persons are also buying shares.

The son of Hoa Phat Group’s chair Tran Dinh Long registered to buy 20 million HPG, a deal worth hundreds of billion dong. Chair of Novaland Bui Thanh Nhon wants to buy 5 million NVL after buying 9.4 million shares. Chair of REE Nguyen Thi Mai Thanh has registered to buy 15 million REE.

Le Ha 

VP Bank shifts FE Credit to joint stock company

The news that VP Bank has decided to shift its subsidiary FE Credit, specializing in consumer lending, to a joint stock company from a limited company has stirred up the public.

Ministry cuts, exempts fees of 15 securities services to support stock market

The Ministry of Finance has cut the fees of nine securities services and exempted fees for six others as from March 19 as part of efforts to support the stock market amid the negative impact of the COVID-19 epidemic.