VietNamNet Bridge - The VN Index has increased by 14.4 percent this year, staying firmly at the 9-year peak. However, many divestment deals have been made by foreign investment funds.  

Though statistics show that foreign investors still maintain net purchase since the beginning of the year, the divestment by foreign funds and strategic shareholders from listed companies have caught special attention.

After Mekong Enterprise Fund II Ltd sold 1 million The Gioi Di Dong (MWG) shares in mid-April, it successfully transferred 3 million MWG shares more in mid-June.

The VN Index has increased by 14.4 percent this year, staying firmly at the 9-year peak. However, many divestment deals have been made by foreign investment funds.

Prior to that, in late February, CTD Electric Bee Ltd sold 1 million MWG shares and registered to sell 1.25 million shares, while Chambers Street Global Fund wrapped up the transfer of 150,000 MWG shares to two other foreign funds - Driehaus Frontier Emerging Markets Fund and KT Zmico Securities Company Ltd.

LGM Investments Ltd, after selling 400,000 PNJ shares of the Phu Nhuan Jewelry Company, is no longer a large shareholder of the company with the ownership ratio down from 5.39 percent to 4.98 percent. 

In late April, Aims Asset Management Sdn BHd from Malaysia concluded a big deal selling 3.7 million PNJ shares to reduce its ownership ratio in PNJ to 1.52 percent.

Dragon Capital on June 2 sold 940,000 SSI shares of Saigon Securities Incorporated (SSI), one of the most prestigious securities company, reducing the ownership ratio to 4.9 percent with which it is no longer a large shareholder. 

In early May, DC Developing Markets Strategies PLC, also belonging to Dragon Capital, sold 1.5 million SSI shares out of 2.75 million shares it was holding. With the deal, its ownership ratio has dropped to 0.26 percent.

The investment funds put under the management of VinaCapital on May 3 sold 29.4 million, 10.69 percent of QCG shares of Quoc Cuong Gia Lai Group for VND250 billion. The funds sold QCG after the share price increased from VND4,000 per share and hit ceiling levels.

Since then, the price of the share has been increasing, now hovering around VND29,000 per share.

Most recently, HSBC announced divestment from Techcombank after 12 years of holding Techcombank shares. Techcombank will take over the stakes for treasury shares at no less than VND23,445 per share. At present, Techcombank shares are traded on the OTC market at VND32,000 per share.

An analyst noted that many of the share sellers are investment funds and strategic shareholders which had held shares for tens of years. The investors may be looking for businesses which are in early stage of development and promise higher profitability.

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Thanh Mai