HCMC – Development Investment Construction Joint Stock Corporation (HOSE: DIG) has been fined VND175 million and ordered to repay investors after using proceeds from a VND600 billion bond issue for purposes other than those disclosed to bondholders.
The Inspectorate of the State Securities Commission issued the penalty decision on June 17, citing violations in the use of funds raised through a private bond placement.
According to the stock market regulator, DIG used VND520.5 billion from the bond issue DIGH2326001, carried out on December 29, 2023, in ways that were inconsistent with the approved issuance plan and information disclosed to investors.
The company spent VND200 billion to acquire shares in DIC Tourism JSC and VND320.5 billion to repay principal and interest on maturing bond DIGH2124003.
The issuance plan approved by the company’s board of directors and disclosed to investors stated that the proceeds would be used for the Long Tan Tourism Urban Area project.
In addition to the fine, the regulator ordered the company to recall the securities and refund investors the amount paid for the securities or any deposits, together with accrued interest.
Investors have up to 60 days from the effective date of the enforcement measure to submit repayment requests. DIG must complete repayments within 15 days of receiving a request.
The interest payable on refunded amounts will be calculated based on the interest rate specified in the bond terms, in line with current regulations, according to the decision.
Closing the trading session today, June 22, DIG inched down 1.16% to VND12,800, with nearly 2.9 million shares changing hands.
The VN-Index rose 33.38 points, or 1.83%, to 1,857.91, driven mainly by gains in Vingroup-related stocks.
On the Hochiminh Stock Exchange, 133 stocks advanced and 183 others declined. Trading volume totaled more than 608.5 million shares worth VND14.6 trillion, down 14.9% in volume and 22.4% in value from the previous session. Block deals accounted for 74.5 million shares valued at VND2.34 trillion.
Vingroup-related stocks led the market higher. VHM remained at its ceiling price, ending the session with nearly 5.5 million shares traded.
VIC also closed at its ceiling price after attracting strong demand from both domestic and foreign investors. More than 3.5 million shares changed hands. Foreign investors were net buyers of over 1.7 million VIC shares.
VRE failed to hold its ceiling-price gain but still rose 4.6% on volume of nearly 11.5 million shares. Together, VIC, VHM, and VRE contributed almost 35 points to the benchmark index.
The gains helped the VN30-Index add more than 16.56 points to 1,980.13 despite a mixed performance among its constituents, with 15 gainers and 12 decliners. Most other bluechips in the VN30 basket moved within a range of around 1%.
Among mid- and small-cap stocks, POW rose 4.3% to VND14,500 per share. Nearly 16 million shares were traded, making it one of the five most active stocks on the market. Foreign investors were net buyers of 3.9 million POW shares.
PC1 gained 5.9% to VND22,000 per share, with trading volume reaching 8.4 million shares.
Real estate was the strongest-performing sector, supported by gains in large-cap stocks. Other sectors posted mixed movements.
Most energy stocks closed higher. PVD rose 3.5%, while BSR gained 1.3% and recorded the highest trading volume in the sector at more than 6.7 million shares.
Banking and securities stocks recovered modestly. LPB rose 2.5%, BID gained 1.56%, and CTG, TPB, and SSB edged higher. SHB was the most actively traded stock on the market with 43.86 million shares traded, though it slipped 0.4%.
In the securities sector, VIX led liquidity with 26.9 million shares traded but fell 0.3%. VND rose 2% on volume of 18.66 million shares, while SSI added 0.2% and VCI gained 1.6%.
On the Hanoi Stock Exchange, pressure from THD and KSF pushed the HNX-Index lower. The index fell 3.77 points, or 1.16%, to 321.06. The exchange recorded 74 advancers and 51 decliners, with trading volume of 38.3 million shares worth VND753 billion.
