PNJ stock plunges as foreign investors exit following diamond incident

PNJ is experiencing a significant downturn in its stock value following a diamond-related incident in July. The stock price has dropped to 23,050 VND per share, representing a 73% decrease from its peak in late January and reaching its lowest level since the March 2020 Covid period. Consequently, the company's market capitalization has decreased by over 32,000 billion VND over eight months, falling to less than 12,000 billion VND.

This decline has triggered a massive sell-off by foreign investors. Previously, PNJ maintained a high foreign ownership rate near the 49% limit. However, following the recent incident, foreign investors have been reducing their holdings. On October 2, a record trading session saw over 76 million PNJ shares change hands, with foreign investors net selling more than 54 million shares, bringing the foreign ownership rate down to approximately 37%. Despite the heavy selling, foreign entities still hold roughly 238 million shares.

The current situation at PNJ draws comparisons to the 2015 shock involving JVC (Viet Nhat Medical Equipment JSC), where high foreign ownership preceded a sharp stock collapse that left many international funds with significant losses.