Stock Prices of ‘Vin Family’ Companies Surge Following Owner’s Decision

Vinhomes (VHM) shares rose by VND2,350 per share to VND37,200 per share, despite selling pressure. Meanwhile, Vingroup shares (VIC) increased by VND2,200 to VND43,500 per share, and Vincom Retail (VRE) went up by VND1,500 to VND18,150 per share.

The surge in the prices of Vin-family shares led to a busy trading day with the VN-Index rising by four points to 1,214 points, following a 22-point recovery in the previous trading session on August 6.

Some bank shares also showed gains on electronic boards. BIDV shares (BID) saw an increase of VND300 to VND47,050 per share, while Saigon Hanoi (SHB) and TPBank witnessed slight upticks.

After the VN-Index dropped by 50 points on August 5, the Vietnamese stock market rebounded, in line with positive trends in Asian markets. The US stock market indexes had also bounced back after a significant decline.

There were concerns over the US economy’s future following surprising labor market statistics, with fears of a potential hard landing due to sustained high interest rates by the US FED.

Following Vinhomes’ announcement of a buyback plan for up to 370 million shares, equivalent to 8.5 percent of the company’s outstanding shares, share prices within the Vin-family soared.

Vinhomes clarified that their market share prices were undervalued compared to the company’s actual worth and that the buyback would bring benefits to both the company and its shareholders.

Vinhomes’ share prices hit the ceiling level of VND37,200, while VRE reached VND18,150, leading to a 7-point increase in the VN-Index to 1,217 points.

Prior to these developments, VHM had experienced a sharp decline in previous trading sessions, dropping from VND60,000 per share a year ago. Vingroup share prices also fell from VND73,000 to VND41,000 currently, and VRE decreased from VND30,000 in early August 2023 to VND17,000 recently.

The subdued real estate market has impacted real estate shares. Even though Vinhomes has continued to report positive business results due to its large projects, price hikes, weak demand, and new regulations might impede the real estate sector’s progress.

Vingroup under Vuong has allocated substantial funds to VinFast, the electric car manufacturer, investing $2.6 billion and providing $2 billion in loans, which accounts for 77 percent of Vingroup’s total loans to its subsidiaries.