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Stocks in FLC family plunge after its chairman’s accounts frozen

The Saigon Times

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HCMC – A host of stocks linked to conglomerate FLC Group such as FLC, ROS, AMD, KLF, and HAI encountered sharp falls after FLC chairman Trinh Van Quyet’s accounts were frozen due to his trading violations.

In today’s morning session, January 12, FLC closed at its floor price of VND18,550. Construction company ROS suffered the same fate, falling sharply to VND12,950. In addition, other stocks in the FLC ecosystem such as GAB, ART, and HAI also plunged to their floor prices.

Yesterday evening, the Ministry of Finance decided to freeze securities accounts in the name of Trinh Van Quyet effective the same day until further notice from the State Securities Commission of Vietnam (SSC).

Aside from his current ownership of over 215 million FLC shares, Quyet holds shares of GAB, ROS, ART, and others, with a total value reaching thousands of billions of dongs.

Yesterday, the Hochiminh Stock Exchange also canceled the FLC chairman’s sale of 74.8 million FLC shares traded on January 10 due to his failure to disclose information prior to the transaction.

Earlier, Quyet registered to sell 175 million FLC shares, worth an estimated VND1.75 trillion, from January 10 to 17 to reduce his ownership in the company from 30.34% to 5.7%. However, the SSC only received a report of his transaction at 5:45 p.m. on January 10. By then, Quyet had already sold 74.8 million FLC shares.

Commenting on the issue, Deputy Minister of Finance Nguyen Duc Chi told Tuoi Tre newspaper yesterday that the ministry will take drastic measures to handle this case in line with the prevailing regulations. The ministry tasked SSC with studying and proposing measures to prevent similar violations. Further, SSC is coordinating with investigators to look into Quyet’s trading violations.

In related news, the benchmark VN-Index of the HCMC market gained 18.2 points, or 1.22% against the previous session at 1,510.51 today, with 203 winners and 267 losers. Turnover on the southern bourse contracted 9% in volume and remained the same in value as yesterday at more than 1.13 billion shares and VND35.7 trillion. Shares traded in block deals contributed around VND1 trillion to the overall value.

On the northern bourse, the HNX-Index lost 7.97 points, or 1.65% over the session earlier to close at 473.64, with over 135 million shares worth over VND4.3 trillion changing hands.

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