In recent weeks, the stock market has witnessed a notable trend: a surge in state-owned stocks slated for divestment, quickly attracting significant investment. Amid a market lacking supportive information, the “divestment wave” has emerged as a rare highlight, becoming the primary driver for many stocks to enter a breakout phase.
Divestment Wave Triggers Sharp Rise in Stocks
At the heart of this wave is the stock GTD of Thuong Dinh Shoe Joint Stock Company. Immediately after Hanoi People’s Committee announced the auction of its entire 68% stake on December 16, GTD stock soared. It recorded seven consecutive ceiling sessions, pushing its price up 150% to VND 30,000 per share—a five-year high.
Similarly, MSB of Maritime Commercial Joint Stock Bank saw a surge after VNPT announced its divestment plan. MSB closed the November 27 session at its upper limit with explosive liquidity, following VNPT’s registration to auction its entire 188.7 million shares at a starting price of VND 18,239 per share. A successful auction could yield VNPT approximately VND 3,441 billion.
Likewise, VTC of VTC Telecom hit its ceiling at VND 15,500 per share on November 27, marking its seventh consecutive ceiling session. This surge followed VNPT’s announcement to auction over 2.1 million shares (46.67% of VTC Telecom’s issued capital). The total starting price exceeds VND 104 billion, or VND 49,200 per share—4.5 times the current market price.
ICT of Post and Telecommunications Informatics Joint Stock Company also joined the rally on divestment news. After a brief correction, it rebounded to its ceiling at VND 20,550 per share. VNPT plans to auction its entire 10 million ICT shares (31.43% of charter capital) at a starting price of VND 74,106 per share, valuing the lot at nearly VND 750 billion—significantly above the current market price.
Similarly, ABC of VMG Media Corporation hit its ceiling at VND 15,400 on November 27, as VNPT announced the sale of its entire 5.77 million ABC shares (28.3% of charter capital) at a starting price of VND 190.2 billion, or nearly VND 32,950 per share.
VEC of Vietnam Electronics and Informatics Corporation continued its strong performance, rising 3.77% to VND 55,000 per share in the latest session. In less than a month, it has quadrupled, becoming one of the market’s hottest stocks. Its rally began after SCIC successfully auctioned 38.5 million shares (nearly 88% of charter capital) in late October at VND 66,000 per share, significantly boosting restructuring and growth expectations.
Caution Advised Amid FOMO on Divestment Stocks
This year marks the final deadline for restructuring many state-owned enterprises, with divestment being a key objective. For instance, VNPT’s divestment transactions are part of its restructuring plan until 2025, approved by the Prime Minister under Decision 620/QĐ-TTg dated July 10, 2024.
Typically, state-divested stocks surge upon auction announcements, driven by heightened investor expectations. In many cases, starting prices are set significantly above market prices, creating a “price anchoring” effect and attracting speculative capital.
Additionally, state divestment is seen as paving the way for new strategic investors. Expectations of improved governance, operational restructuring, and more efficient asset utilization fuel market optimism about new growth cycles for these enterprises.
However, rapid price increases carry risks. Many stocks rise primarily on expectations, while their financial performance remains unremarkable. This mismatch between price and fundamentals makes them vulnerable if new information fails to sustain support. Particularly, if auction results fall short of expectations or strategic investors are absent, stocks may reverse sharply.
Furthermore, quick inflows and outflows of capital lead to high volatility, increasing risks for investors buying at peaks. As the divestment wave is expected to continue, analysts emphasize caution: instead of chasing trends, investors should thoroughly evaluate a company’s intrinsic value and post-restructuring prospects. Only enterprises with sustainable growth narratives will retain value once the wave subsides.
Consecutive Capital Injection Denials by CC1 for Subsidiary and Affiliated Companies
Leading construction conglomerate No. 1 Corporation – JSC (UPCoM: CC1) is demonstrating a clear strategic shift in its portfolio restructuring by halting further capital injections into several subsidiaries, despite their recent establishment.
HDBank Divests Stake in Vietjet
The Board of Directors of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) has announced a resolution approving the sale of its holdings in Vietjet Aviation Joint Stock Company (stock code: VJC).
Vietravel and Vietravel Airlines Part Ways
Vietravel’s Board of Directors has approved a resolution to divest its entire stake in Vietravel Airlines, marking the end of a tumultuous investment journey in the aviation sector.
VNPT Announces Auction of 188.7 Million MSB Shares
VNPT is set to auction over 188.7 million shares in MSB, with a starting price of 18,239 VND per share. This equates to a total lot value of approximately 3,441 billion VND.
Why Are Cement Giants Divesting from Multiple Enterprises?
Vietnam Cement Industry Corporation (Vicem) has announced plans to auction shares in batches across multiple subsidiaries and affiliates, scheduled for December 22-23. This move aligns with Vicem’s restructuring plan for the 2021-2025 period. Last year, the Ministry of Finance’s Inspectorate flagged potential capital loss risks in Vicem’s investments in several companies.
