PNJ Shares Hit Floor for Second Day, Chairman Family Loses VND 710B on Diamond Smuggling Probe

Overview

PNJ shares continued their sharp decline, hitting the floor for a second straight session on July 6, as the market reacted to a diamond smuggling investigation involving a former director of its wholly owned subsidiary P-Lab. The sell-off wiped out over VND 4.3 trillion in market capitalization, with the family of Chairman Cao Thị Ngọc Dung losing more than VND 710 billion in stock value.

Key Facts

• PNJ shares fell to VND 54,600 per share, the floor price for the second consecutive session on July 6.
• The stock has dropped over 35% from its January 2026 peak.
• Market capitalization lost more than VND 4.3 trillion over the two sessions.
• Chairman Cao Thị Ngọc Dung’s family holds nearly 84 million shares, or 16.4% of PNJ’s charter capital.
• The family’s stock value decreased by over VND 710 billion in two sessions; Chairman Dung’s personal stake fell nearly VND 130 billion.
• The investigation involves former P-Lab director Đặng Ngọc Thảo in a transnational diamond smuggling case.
• P-Lab has charter capital of VND 10 billion and is 100% owned by PNJ.

What Happened

On the morning of July 6, PNJ shares opened with heavy selling pressure, hitting the floor for the second consecutive day at VND 54,600 per share. The stock saw no buy orders and had over 13.3 million shares offered for sale. The decline accelerated after PNJ issued a disclosure on July 2 regarding an investigation by authorities into Đặng Ngọc Thảo, former director of P-Lab, in connection with a transnational diamond smuggling case.

PNJ stated that the legal responsibility lies with the individual and that the company is cooperating with authorities. It emphasized that its retail system, sales, warranty, and customer services remain unaffected. P-Lab, a wholly owned subsidiary, is also cooperating with the investigation. Notably, PNJ board member Đặng Thị Lài, who chairs P-Lab, is the sister of the accused former director.

Market Context

PNJ shares have been under severe pressure, closing at VND 58,700 on July 5, down 6.97% with heavy volume of 1,185,500 shares. The stock is now trading well below its January 2026 highs, reflecting investor concern over governance and legal risks. PNJ is listed on HOSE and is a leading jewelry retailer in Vietnam. The broader market has been relatively stable, but this event has triggered a sharp sector-specific sell-off.

Strategic Significance

The investigation raises questions about internal controls and governance at PNJ, particularly regarding its subsidiary P-Lab. While PNJ has distanced itself from the individual’s actions, the involvement of a board member’s relative may amplify reputational risk. For long-term investors, the key issue is whether this is an isolated incident or indicative of broader compliance weaknesses. PNJ’s strong retail brand and market position could help it recover if the investigation is contained, but near-term sentiment remains fragile.

What to Watch

• Further updates from authorities on the smuggling investigation and any potential expansion.
• PNJ’s Q2 2026 earnings report, expected in late July, to assess any financial impact.
• Any changes in PNJ’s board or management structure, especially regarding P-Lab oversight.
• Trading volume and foreign investor flows, as foreign ownership is near the limit.
• PNJ’s official response and any additional disclosures regarding internal controls.