AGM shares reversed course suddenly.

Shares of An Giang Import-Export Joint Stock Company (Angimex) are falling to the floor price for the third consecutive session, down to 3,900 VND, after establishing a streak of eight consecutive sessions of hitting the ceiling price.

AGM shares opened the trading session on September 24th at the floor price of 3,900 VND and remained at this level throughout the session. This was the third consecutive session in which the stock lost all its gains after breaking its previous eight-session streak of hitting the ceiling price. Consequently, the share price fell by nearly 20% compared to the last session where it hit the ceiling price.

AGM closed today's session with no buyers. Selling pressure was strong, but buyers were hesitant, resulting in only 149,900 shares changing hands, equivalent to a transaction value of over 584 million VND – less than half of the volume at the beginning of the week. Meanwhile, the remaining sell orders at the floor price at the end of the session totaled nearly 700,000 shares.

In its first session of hitting the lower limit, AGM recorded a trading volume of 1.5 million shares, the highest since the company resumed full-time trading on the Ho Chi Minh City stock exchange at the end of March.

Price and liquidity chart of AGM shares since resuming full-time trading on the Ho Chi Minh City Stock Exchange.

According to Angimex's management, the recent sharp fluctuations in AGM prices are due to increased investor expectations amid significant volatility in the rice market.

In a document sent to the Ho Chi Minh City Stock Exchange (HoSE) to explain the series of price increases starting from September 10th, Angimex's leadership stated that Vietnam's rice export situation remains favorable due to increased import demand from traditional customers. However, India's consideration of easing rice export policies is a factor causing significant volatility in the rice market at the end of this year. In addition, Super Typhoon Yagi caused severe damage to rice and corn crops in northern provinces, raising concerns about food shortages and leading to price increases domestically, thus increasing investor expectations .

The company stated that the consecutive surge in AGM share prices was due to supply and demand in the stock market and investor decisions beyond the company's control. Angimex affirmed that it did not influence the share price in the stock market.

The share price surged despite the HoSE placing AGM shares under control from September 10th due to accumulated losses exceeding the actual contributed charter capital in this year's consolidated semi-annual financial report. In a written explanation issued one day later, Mr. Huynh Thanh Tung, General Director of Angimex, stated that the company is implementing various measures to remove the shares from the control list.

According to Mr. Tung, Angimex continues to seek professional securities investors to carry out the private placement of shares to increase its equity capital, thereby supplementing working capital for production and business operations and overcoming the situation of accumulated losses exceeding the actual contributed charter capital. In addition, the company is also implementing a comprehensive restructuring through optimizing the management system, streamlining personnel, expediting the recovery of bad debts, and liquidating assets.

Angimex's management is also considering issuing private placement shares to convert bond debt into shares for bondholders, thereby increasing charter capital and improving its financial situation. The management added that, to address the issue of shares being under control, the company will provide explanations and reports on its situation quarterly and will not violate regulations on information disclosure in the stock market.

Recently, Angimex announced that it had received the resignation letter from Ms. Nguyen Thi Thu Hoa, Deputy General Director in charge of finance, due to personal reasons. Angimex will proceed with the relevant procedures to submit Ms. Hoa's resignation to the Shareholders' Council for consideration and resolution in accordance with regulations.

In the first half of the year, Angimex recorded revenue of VND 151 billion, a decrease of more than half compared to the same period last year. The company reported a net loss of nearly VND 100 billion, while the figure for the same period in 2023 was less than VND 58 billion. This significant loss in the first half of the year increased the accumulated undistributed losses to VND 259 billion, resulting in negative equity of VND 77 billion.

Angimex aims for revenue of 1,742 billion VND and pre-tax profit of 5 billion VND this year. This target is significantly more optimistic than last year's business results, when revenue only reached 788 billion VND and pre-tax loss exceeded 221 billion VND.

The company's total assets currently stand at VND 1,165 billion, a slight decrease compared to the beginning of the year. Liabilities exceed assets, reaching VND 1,242 billion, with the majority being short-term liabilities.

Source: https://baodautu.vn/co-phieu-agm-dao-chieu-dot-ngot-d225740.html