VN-Index experienced a dramatic week, new movements in the stock manipulation case of "family" FLC

Last weekend, the investigation agency announced the supplementary conclusion of the criminal case related to Mr. Trinh Van Quyet, in which it proposed to prosecute 7 securities industry officials.

The conclusion of the supplementary investigation into the criminal case occurring at FLC Group Joint Stock Company and related units has been announced.

Proposal to prosecute many securities industry officials involved in the FLC stock manipulation case

Last weekend, the Ministry of Public Security's Investigation Police Agency issued a supplementary investigation conclusion on the criminal case of "Stock market manipulation", "Fraudulent appropriation of property", "Abusing position and power while performing official duties" and "Intentionally disclosing false information or concealing information in securities activities" occurring at FLC Group Joint Stock Company and related units.

In relation to this case, the investigation agency has determined that many individuals belonging to the state management agency with the authority to approve the registration of public companies, securities depository and stock listing have committed acts of "Taking advantage of positions and powers while performing official duties" and "Intentionally disclosing false information or concealing information in securities activities".

According to the Supplementary Investigation Conclusion, the investigation agency initiated additional criminal proceedings and prosecuted 4 defendants at the Ho Chi Minh City Stock Exchange for the crime of "Abusing positions and powers while performing official duties", stipulated in Clause 3, Article 356 of the 2015 Penal Code. Three defendants from the Department of Supervision of Public Companies, under the State Securities Commission, and the Vietnam Securities Depository Center were prosecuted for the crime of "Intentionally disclosing false information or concealing information in securities activities", stipulated in Clause 2, Article 209 of the 2015 Penal Code. The Ministry of Public Security's Investigation Police Agency transferred the entire case file to the Supreme People's Procuracy (Department 5), proposing to prosecute 51 defendants according to the provisions of law.

Reversal falls deeply in the last trading session of the week

The stock market experienced a dramatic trading week, especially in the last session of the week (February 23). The VN-Index surpassed the 1,240 point mark early Friday afternoon but suddenly "fell" afterwards. The decline spread across most groups, including banking stocks. The VN-Index fell to nearly 1,210 points at the close, which was also the lowest level of the day. The HoSE index fell 15.3 points throughout the session but actually fell more than 30 points compared to the peak reached.

The last session of the week also wiped out most of the efforts of the past week. Previously, VN- Index jumped more than 15 points in the first session with the biggest driving force from Vin stocks, following the news that Vinfast was granted land by India to build a factory. VN-Index actually "shaken" quite strongly in the middle sessions of the week but still managed to extend the increase streak until the session of February 21, then decreased slightly in the session of February 22 and fell deeply at the end of the week.

VN-Index closed last week at 1,212 points, up 0.2% compared to the previous week; while HNX-Index decreased 0.69% to 231.1 points and UPCOM-Index increased slightly 0.07% to close at 90.2 points.

According to statistics from VNDirect Securities analysis department, the main factors supporting the market this week were (+7.1%); VRE (+13.1%) and TCB (+4.2%); meanwhile, VCB (-0.8%); MWG (-4.9%) and VPB (-1.8%) put pressure on the general index.

According to Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, profit-taking pressure increased sharply in the last session of the week after the VN-Index hit the resistance zone around 1,240 points.

“The market approaching a strong resistance zone and the news of a sharp increase in interbank interest rates in recent sessions have made investors cautious and triggered a wave of profit-taking.” However, analysts from VNDirect believe that the recent increase in interbank interest rates is only temporary due to a local lack of liquidity and does not represent the overall picture of the system. Along with the fact that credit demand is not high at present, the pressure on deposit and lending interest rates will not be large and the recent increase in interbank interest rates is only temporary and will soon subside.

Bright spot of liquidity and return of foreign capital thanks to BHI stock

Last week, the trading value on the three exchanges increased by 29% compared to the previous week to VND26,000 billion/session, due to the cash flow returning to the market after the holidays. The highlight of this week was also the return of net buying by foreign investors. Foreign investors also traded more actively in many trading sessions, both buying and selling.

However, the breakthrough factor this week that needs to be mentioned is the transaction in BHI shares. DB Insurance Co., Ltd - one of the leading non-life insurance companies in Korea bought 75 million BHI shares of Saigon - Hanoi Insurance Corporation through many negotiated orders in the first 15 minutes of the session on February 19. This transaction alone had a total value of nearly VND 1,630 billion.

Foreign investors have been net sellers for the past three sessions. Strong net selling by foreign investors, concentrated in some large-cap stocks, also put pressure on the VN-Index during the sharp fall last Friday.

Fine KIM Vietnam Fund Management Company

On February 23, 2024, the State Securities Commission issued Decision No. 79/QD-XPHC on administrative sanctions in the field of securities and securities market against KIM Vietnam Fund Management Company Limited with a fine of VND 85,000,000.

The reason is due to the execution of asset transactions for investment trust customers with a transaction value in the year through a securities company exceeding the limit on the ratio of the total transaction value in the year of the trust customers. In the fiscal year from January 1, 2022 to December 31, 2022, the transaction ratio of KIM Growth VN30 ETF Fund through KIS Vietnam Securities Joint Stock Company to the total transaction value of the Fund is up to 74.46%.

KIS Securities explains why it was impersonated

Also related to KIS Vietnam Securities, the State Securities Commission said it had received a report from this securities company about a number of individuals pretending to be KIS employees establishing an association and group on Zalo with the name "Zalo Group: (A221). Exchange of securities investment analysis; YY03 STOCK MARKET TRENDS". This group has lured, enticed and defrauded investors of their assets. The State Securities Commission has forwarded KIS's report to the authorities for coordination in handling and cautioning investors when accessing the above social network address.

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