With several negative information in the market, the VN-Index continued to decrease by nearly 39 points in the last session of the week on October 7. Market capitalization on the HoSE lost another VND153.5 trillion in the trading session to VND4.12 quadrillion. The VN-Index was in the top five Asian stock indexes with the sharpest drop on October 7.
Stockholders dumped shares heavily, whereas investors holding money did not participate in the market, causing the VN-Index to retreat to near 1,200 points. With a drop of roughly 29 points in the trading session on September 19, all previous gains of the VN-Index in August were erased.
Delisting shares on the stock market is a tool for market regulators to create a transparent investment environment, and filter and remove poor quality stocks that cause market manipulation, strengthening investors' confidence in the stock market.
Although the market capitalization on the Ho Chi Minh Stock Exchange (HoSE) in July 2022 has increased by VND40 trillion (US$1.72 billion) compared to the previous month due to the recovery of the stock market, the market capitalization of the HoSE in the first seven months of 2022 has evaporated VND1.01 quadrillion ($43.43 billion) compared to the end of 2021.
In the week before the holiday of the Reunification Day and International Labor Day, although many domestic investors sold off many groups of stocks, foreign investors were still net buyers, with a total volume of 19.6 million shares, equivalent to a net buying value of more than VND813 billion (US$35.45 million) in the whole market.
After Trinh Van Quyet, Chairman of the Board of Directors of FLC Group, was arrested and detained, many experts said that although stocks in the "ecosystem" of FLC attracted many investors, because of its rather small scale, it cannot affect the stock market in particular, as well as the economy in general.
The Investigation Police Agency under the Ministry of Public Security (C01) has recently prosecuted Trinh Van Quyet, Chairman of the Board of Directors of FLC Group, to investigate the act of stock market manipulation.
After the Ministry of Public Security issued a decision to prosecute Mr. Trinh Van Quyet, Chairman of the Board of Directors (BOD) of FLC Group on March 29, to limit any risks that may arise and ensure the regular operation of the group, Mr. Trinh Van Quyet authorized Ms. Vu Dang Hai Yen, Deputy General Director of FLC Group, to replace his position in the group.
The Investigation Police Agency of the Ministry of Public Security (C01), on March 29, issued a decision to investigate the criminal case, decisions to prosecute the accused, and an arrest warrant for Trinh Van Quyet, Chairman of FLC Group. At the same time, police have searched the residences and workplaces of related subjects at 21 places.
According to the Vietnam Securities Depository (VSD), domestic investors opened more than 405,000 securities accounts in the first two months of 2022, higher than the total number of newly-opened accounts in the whole year of 2020 (393,659 accounts).
Shareholders of stock code of Hoang Anh Gia Lai (HAG) reacted strongly to the decision to delist on HoSE and switch to UPCoM. This shows that investors still have a sentimental value in stocks that they hold.
A leader of the State Securities Commission of Vietnam (SSC), on January 12, said that directing the Ho Chi Minh City Stock Exchange (HoSE) to cancel the sale of 74.8 million FLC shares by Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC, for not reporting and disclosing information before performing the transaction was an unprecedented measure on the Vietnamese stock market.
The Ho Chi Minh City Stock Exchange (HoSE), on the evening of January 11, informed that it had canceled the sale of 74.8 million shares of Mr. Trinh Van Quyet, Chairman of FLC Group conducted on January 10, following the direction of the State Securities Commission of Vietnam (SSC) in Dispatch No.198/UBCK-TT dated on January 11, 2022.
The Ministry of Finance (MoF), on the evening of January 10, informed that it had assigned relevant agencies to urgently clarify the temporary instability of the Gateway system - the system that returns market information to securities companies - at the Ho Chi Minh City Stock Exchange (HOSE).