Duc Giang Chemical stock comes under heavy selling pressure as bottom-fishing shares return

DGC shares of Duc Giang Chemical Group JSC (DGC) closed Tuesday at VND71,600 apiece, down 4% from Monday which saw a 6.27% increase after four sessions of sharp declines last week.

The stock has caught great market attention as over the last trading week (December 15-19), DGC fell nearly 23.7%, bringing its year-to-date decline to almost 40%.

The sharp drops last week wiped nearly VND3.4 trillion ($129.2 million) off the stock-based wealth of the family of chairman Dao Huu Huyen. Last Friday, the stock had hit the daily down limit in the previous three sessions amid heavy sell orders.

Although DGC surged at the opening of the Tuesday morning session on the Ho Chi Minh Stock Exchange (HoSE), it faced heavy selling pressure and closed the session down 4% as bottom-fishing shares from last Friday returned to investors’ accounts.

Trading volume reached nearly 13.4 million shares, equivalent to about one-third of the bottom-fishing volume recorded last Friday.

Wednesday is the ex-dividend date for Duc Giang Chemical, which is set to pay a 30% cash dividend. Therefore, investors who sold DGC shares during the Tuesday session will not be entitled to receive the cash dividend.

Founded in 1963 as a state-owned enterprise under Vietnam’s General Department of Chemicals, Duc Giang Chemicals was equitized in 2004, listed on the Hanoi Stock Exchange in 2014, and moved to the HoSE in 2020.

Under Dao’s leadership, the company has expanded from detergent-related products into industrial chemicals, pure chemicals, fertilisers, and real estate. Its charter capital has risen to VND3.8 trillion ($144.3 million) from VND15 billion ($571,000) at the time of equitization, with a market capitalisation of more than $1.2 billion.

For the first nine months of 2025, DGC reported a 14.4% rise in revenue to 8.52 trillion ($323.8 million) and a 9% increase in net profit to VND2.53 trillion ($96.23 million).

Included in the VN30 basket, DGC is a stock consistently favored by investors, especially those with a medium- to long-term perspective, or those holding assets to receive dividends. Therefore, the recent performance of DGC shares has attracted significant investor attention.

However, the company remains silent despite the stock having fallen sharply for four consecutive sessions ((December 16-19). The latest information DGC has announced is a plan to pay an interim cash dividend for 2025 at a rate of 30%, with the record date being December 25 and payment due on January 15, 2026.

At Tuesday’s close, the VN-Index, tracking the performance of the HoSE, rose by 21.12 points to 1,772.15, driven mainly by the Vingroup stocks.

The duo VIC of Vingroup and VHM of its real estate arm Vinhomes both hit their ceiling prices of VND169,900 ($6.45) and VND114,900 per share, respectively, contributing 27.65 points to the VN-Index’s gain. VRE of Vincom Retail and VPL of Vinpearl also increased by 4-5%.

Another notable driver supporting the VN-Index was STB of Sacombank, which hit its ceiling price for the second consecutive session. In contrast, LPB of LPBank fell sharply by 5%. The movements of these two stocks were linked to news that Nguyen Duc Thuy stepped down as chairman of LPBank from Tuesday and officially assumed the role of acting CEO of Sacombank.

Apart from a few bright spots, most VN30 stocks, as well as banking, securities, real estate, steel, and retail shares, traded in the red.

Trading value on the HoSE declined by 14% to VND26.3 trillion ($998.75 million). However, the high liquidity in the Tuesday session was largely driven by an exceptional block deal in VNM of dairy giant Vinamilk, valued at over VND6 trillion ($227.85 million).