Kosy’s stock falls for a 20th straight session to the daily limit as forced margin selling overwhelms the market, wiping out about 80% of its value in a month and leaving more than 91 million shares stuck at the floor.
Kosy stock falls to 20th straight floor session
The company says nothing has changed in its core business, but that has not stopped the slide. In a filing and statement dated Oct. 16, Chairman Nguyen Viet Cuong said the decline is being driven by market psychology, technical pressure and widespread cuts in margin lending on KOS by securities firms, which have triggered forced liquidations and added to supply.
That explanation matters because the selloff has moved far beyond normal valuation pressure. KOS closed at 7,220 dong a share, down from 33,300 dong on Sept. 14, and the market value of Kosy has evaporated by nearly 5,270 billion dong, according to the company’s disclosure. Daily turnover has dried up to less than 20,000 shares even as the floor pile-up swelled to 91 million shares, or about 42% of the free float, underscoring how little demand is stepping in.
The plunge is now feeding on itself. Cuong had 560,854 KOS shares sold by brokerages in forced liquidation between Oct. 7 and 13, cutting his stake to 33.17% from 33.43%, while his sister-in-law Hoang Thi Yen has registered to buy 8 million shares in an apparent attempt to support ownership. The company has repeatedly told the Ho Chi Minh Stock Exchange that its investment, real estate development, renewable energy and project operations remain on schedule and there are no abnormal internal issues behind the stock’s collapse.
For investors, the key question is whether the selling pressure is purely mechanical or a sign of deeper concern about liquidity and financing risk around the name. A sustained floor-lock usually means sellers are far outnumbering buyers, and repeated margin cuts can force more liquidation even when the issuer insists fundamentals are intact.
The next catalyst is whether brokerages ease margin restrictions or whether Kosy can restore confidence with more concrete operating updates. Until then, KOS remains a high-volatility, highly crowded trade with little evidence that the selling has exhausted itself.
| Entity | Gains | Losses |
|---|---|---|
| Securities firms | ▲Reduce lending risk | ▼Face forced-sale exposure |
| Short-term sellers | ▲Lock in downside momentum | ▼Risk whipsaws if demand returns |
| Kosy management | ▲Keeps operating control | ▼Credibility and market value |
| Existing KOS shareholders | ▲Potential relief if selling ends | ▼Heavy mark-to-market losses |
