Companies race to buy back shares as stocks tumble

A Thanh Thanh Cong Bien Haa JSC factory. (Photo: congthuong.vn)

“Companies buying back shares at this time might help reassure shareholders,” said Phan Dung Khanh, investment director of Maybank Kim Eng Securities.

Companies buying their own stocks reduce the total amount of shares on the market, leading to a rise in earnings per share that boosts stock prices.

“To help companies repurchase their shares faster, the State Securities Commission has shortened the process from seven days to just one,” said Tran Van Dung, Chairman of the State Securities Commission.

Tran VuMinh, son of Tran Dinh Long, Chairman of steel giant Hoa Phat Group (HPG), bought back 20 million HPG shares between March 17 to April 16.

HPG is trading at 18,600 VND per share.

Nguyen Thi Mai Thanh, Chairwoman and CEO of the Refrigeration Electrical Engineering JSC (REE), bought 15 million REE shares between March 18 to April 17.

The chairwoman is expected to spend over 450 billion VND on REE, that is priced at 29,800 VND per share.

Thanh’s ownership in the company will increase to 12.2 percent, equivalent to 37.7 million shares, when the transaction is completed by April 17.

A major shareholder in REE, Platinum Victory Pte Ltd, also registered to buy more than 3 million shares between March 19 and April 17.

Bui Thanh Nhon, chairman of real estate developer Novaland Investment Group (NVL), has registered to buy five million shares between now and April 18 at a cost of 255 billion VND.

After the transaction, he will hold 206 million shares in the company, equivalent to 21.25 percent of the capital.

On the stock market, NVL is priced at 51,000 VND per share.

The board of directors at Sai Gon Thuong Tin Real Estate JSC (SCR) will buy back five million shares at a cost of 22 billion VND before April 17.

Masan Consumer Holdings Ltd bought 1.3 million shares of Masan Consumer Corporation (MCH) between March 17 to March 31 at a price of 58,000 VND per share.

Tien Phong Joint Stock Commercial Bank (TPBank) also registered to buy 10 million shares before April 18 at a cost of 200 billion VND.

The PAN Group has announced a plan to buy back 21.6 million shares worth nearly 370 billion VND.