PNJ Shares Plunge to 15-Month Low on Diamond Smuggling Prosecution

Overview

PNJ shares (HOSE: PNJ) plunged to a 15-month low on July 15, 2026, after former subsidiary director Dang Ngoc Thao was prosecuted for diamond smuggling. Despite management’s reassurances and insider buying plans, the stock hit the daily limit down with millions of shares offered for sale. The decline erased nearly half of PNJ’s market capitalization from its January peak.

Key Facts

• PNJ shares closed at VND 44 on July 15, down 6.93% with a volume of 7.7 million shares.
• The stock hit a 15-month low, the lowest since April 2025.
• Market capitalization fell to under VND 22.4 trillion, down nearly 50% from the January 2026 peak.
• Former P-Lab director Dang Ngoc Thao was prosecuted for diamond smuggling.
• PNJ Chairwoman Cao Thi Ngoc Dung stated that PNJ’s diamonds are imported from Thailand and Hong Kong with proper documentation.
• CEO Phan Quoc Cong registered to buy 1 million shares from July 17 to August 14.
• Cao Ngoc Duy, brother of the chairwoman, registered to buy 300,000 shares from July 10 to August 7.
• VinaCapital-managed funds sold over 3 million PNJ shares on July 8.
• PNJ will close the shareholder list on August 17 to seek approval for a share buyback.

What Happened

PNJ shares experienced a sharp sell-off on July 15, one day after an unexpected limit-up move. Selling pressure intensified in the afternoon session, driving the stock to the floor price with millions of shares left unsold. The decline followed the prosecution of Dang Ngoc Thao, former director of P-Lab, a PNJ subsidiary, for diamond smuggling.

In response, PNJ management held an online investor meeting on July 6, where Chairwoman Cao Thi Ngoc Dung emphasized that PNJ’s diamonds are imported from Thailand and Hong Kong with valid documentation. She clarified that PNJ’s relationship with P-Lab is limited to appraisal service contracts, and none of the approximately 28,000 diamonds allegedly involved in the smuggling case were sold through PNJ’s distribution system. Despite these assurances, selling pressure persisted.

Market Context

PNJ shares have been under severe pressure since the smuggling allegations emerged, with the stock losing nearly half its market value from the January 2026 peak. The July 15 close at VND 44 marks the lowest level in 15 months. The sell-off contrasts with insider buying plans: CEO Phan Quoc Cong registered to buy 1 million shares, and Chairwoman’s brother Cao Ngoc Duy registered to buy 300,000 shares. However, institutional selling by VinaCapital-managed funds, which offloaded over 3 million shares on July 8, has added to the negative sentiment. PNJ is listed on HOSE in the Personal & Household Goods sector.

Strategic Significance

The diamond smuggling case poses a reputational risk for PNJ, a leading jewelry retailer in Vietnam. Management’s swift response and insider buying signal confidence in the company’s operations and supply chain integrity. The proposed share buyback, to be voted on by shareholders, further underscores management’s commitment to supporting the stock price. However, the divergence between insider buying and institutional selling suggests that investor confidence may take time to restore. The outcome of the legal case and its potential impact on PNJ’s brand and sales will be critical for long-term investors.

What to Watch

• Shareholder vote on share buyback plan on or after August 17.
• Insider buying execution: CEO Phan Quoc Cong’s purchase of 1 million shares (July 17-August 14) and Cao Ngoc Duy’s purchase of 300,000 shares (July 10-August 7).
• Further developments in the diamond smuggling case, including any additional charges or findings.
• PNJ’s Q2 2026 earnings release for any impact on revenue or margins.
• Foreign ownership trends and any further institutional selling or buying.