The State Securities Commission (SSC) issued a decision on administrative sanctions against Mr. Nguyen Viet Ha for manipulating the price of GKM shares of GKM Holdings Joint Stock Company (Khang Minh Group).
Specifically, according to the investigation, during the period from August 2, 2021 to January 28, 2022, Mr. Nguyen Viet Ha used 23 accounts to continuously buy, sell, and trade GKM shares to create profits. Artificial supply and demand, stock price manipulation.
The inspection and calculation results showed that Mr. Ha had no illegal income due to violations.
For the above actions, Mr. Ha was fined 1.5 billion VND and a number of preventive measures were also applied. Specifically: Prohibition of securities trading for a period of 2 years from October 9, 2023; Prohibited from holding positions at securities companies, securities investment fund management companies, branches of securities companies and foreign fund management companies in Vietnam, securities investment companies for 2 years from October 9, 2023.
In about 6 months, an individual used 23 accounts to continuously buy, sell, and trade GKM shares.
In another development related to GKM shares, APG Securities has recently continuously purchased to increase ownership. This securities company became a major shareholder of GKM after purchasing 1.82 million shares on December 15, thereby increasing its ownership ratio from 4.89% to 10.69%. After that, APG Securities continued to buy a total of more than 703 thousand GKM shares in 2 consecutive days from December 19-20, 2023 to increase its ownership rate to 12.93%.
On the market, GKM shares are currently at 33,100 VND/share, up nearly 38% compared to the beginning of the year. The corresponding market capitalization is about 1,000 billion VND.
It can be seen that, in the trading week near the end of the year, VN-Index had only one down session, the rest all closed in green. However, the situation around the 1,100 point mark was maintained throughout the week in the context of gloomy trading, investors chose to stand aside and observe and only buy and sell in an exploratory fashion. This week, the HoSE representative index almost stood still with only an improvement of 0.76 points.
According to Mr. Nguyen The Minh - Director of Yuanta Vietnam Securities, the shrinking cash flow is not surprising at the end of the year given the widespread psychological effect of rest.
In addition, weak stock price fluctuations also show weak selling pressure. The low liquidity effect is only worrying if stock prices fall with a wide margin, reflecting a clear shortage of buyers.
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Currently, investors are still actively blocking buying at low prices to wait for sellers' impatience to lower prices. If investors still do not want to sell cheaply, supply and demand cannot meet and small liquidity is normal.
Regarding factors that can trigger investor cash flow to return to the market, Mr. Huynh Hoang Phuong - Director of FIDT Analysis said that investors are waiting for clearer signals about economic recovery expectations and Foreign investors' selling pressure gradually decreased before deciding to act.
Therefore, FIDT experts believe that in the near future, if the selling force from foreign investors cools down and stories surrounding the fourth quarter business results of businesses are gradually revealed, it is likely that cash flows will be strong. Be bolder in trading.
Mr. Phuong said that net selling by foreign investors still needs to continue to be monitored. Foreign pressure will make it difficult for the index to go up in the short term, but with the market being in a cheap valuation zone, opportunities will appear in 2024 when foreign capital flows reverse.
Looking towards the end of 2023, the most awaited story is whether the new KRX system will be able to come into operation as planned. The new system plays an important role in helping the market complete the criteria to upgrade from marginal to emerging. This is also expected to be a key factor contributing to attracting foreign investors in the future.