A number of bank leaders and their relatives and major shareholders have signed up to buy stocks recently. Besides, some banks also plan to buy back a large amount of shares to make treasury shares, increasing the value for shareholders.
Nguyen Ngoc Giang, son of Nguyen Duc Vinh general director of Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) bought more than 10 million VPB shares via put-through transactions from April 15 to May 14. Before the transaction, Giang did not hold any VPB stock. It was estimated that Giang spent about 190-240 billion dong.
Earlier, in February, the son of Chair of Saigon Hanoi Commercial Joint Stock Bank (SHB) and son of Chair of National Citizen Commercial Joint Stock Bank (NCB) also bought a large amount of shares. Specifically, Do Vinh Quang the second son of Do Quang Hien Chair of SHB has successfully purchased 35.9 million shares of SHB by order matching method. According to the market price of SHB shares during the transaction period (February 15 3), Quang might have spent 215-235 billion dong. Until now, the value of shares owned by Quang has increased to more than 500 billion dong, doubling after three months.
Meanwhile, Nguyen Tran Trung Son son of the Chair of the NCB Bank also bought more than eight million shares from February 24 to 25.
A number of bank leaders also bought shares during the period when the market fell sharply. For example, the chief accountant of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has registered to buy 10,000 VCB shares during the period April 22-26, when the price was only 66,000-69,000 dong per share. After this time, VCB’s stock price started to rebound and is currently traded around 77,000 dong per share (an increase of about 12-16%).
At HCM City Development Joint Stock Commercial Bank (HDBank), Tran Hoai Nam deputy general director of the bank has bought 500,000 HDB shares from April 3 to 29, when the stock price ranged from 19,500 to 21,500 dong per share. Currently, HDB has increased to around 23,000 dong per share.
Besides, Nguyen Huu Dang HDBank’s vice Chair also registered to buy one million shares, Pham Van Dau Finance director registered to buy 500 thousand shares, trading from April 20 to May 15.
Similarly, the general director of Asia Commercial Joint Stock Bank (ACB) also wants to buy 350,000 ACB shares, expected to be implemented from May 19 to June 5, 2020.
Major shareholders of some banks also planned to buy additional shares. For example, SCIC, a major shareholder owning more than nine percent at Military Commercial Joint Stock Bank (MB MBBank), registered to buy one million MBB shares during April 16 to May 15, but failed due to market fluctuations.
Meanwhile, Sovico Group, a major shareholder of HDBank, bought 5.4 million HDB shares from April 3 to 29 and continued to register to buy 4.6 million shares for investment purposes, expected to be implemented from May 11 to June 9, 2020.
Some recent plans to buy treasury stocks have been mentioned by some banks. In particular, VPBank has approved the plan to repurchase up to 122 million shares to make treasury shares in 2020. TPBank also completed the purchase of 10 million treasury shares from March 20 to 26, 2020. According to the banks, the purpose of buying treasury shares is mainly to reduce the number of outstanding shares, support transactions, and increase shareholder value.
