Eximbank stock price falls due to market supply, demand: bank

Eximbank, with Japan's SMBC as major shareholder, says it cannot control the continuous fall of its share price because it is driven by market supply and demand.

In a letter sent to the State Securities Commission of Vietnam and Ho Chi Minh City Stock Exchange explaining why its shares had hit their floor prices for five consecutive sessions from November 9-15, the private bank (trading code: EIB) said it was operating normally.

"Our nine-month performance was positive, with many indices exceeding 2022 targets," it wrote.

The creditor affirmed that its business activities were growning safe and sound, and always complied with the laws and State Bank of Vietnam regulations. Therefore, the volatility of stock prices had no impact on the bank's peformance.

In the first nine months of the year, the bank's pre-tax profit reached VND3,181 billion ($128.2 million), up 229% year-on-year. In 2022, the bank plans to achieve pre-tax profit of VND2,500 billion ($100.8 million).

In October, Vietnamese multi-sector corporation Thanh Cong Group sold all of its 60.54 million shares in Eximbank, or a 4.93% stake.

In a similar case, Nam Kim Steel JSC, a galvanized steel sheet producer, in mid November said it could not control the plunge of its share price because it was caused by investor sentiment.

Nam Kim Steel (HoSE: NKG) had seen its price hit the floor for five consecutive sessions. Compared to its peak at the end of March 2022, the market price of Nam Kim Steel had "evaporated" by up to 80%.

Previously, on November 10, major Vietnamese real estate developer Novaland said the price of its shares had hit the floor for five consecutive sessions due to market sentiment and macroeconomic conditions.