HCMC – KIDO Group, which trades its shares on the Hochiminh Stock Exchange under the code KDC, has approved a plan to divest from the Chuk Tea & Coffee chain, formerly known as Chuk Chuk.

The reason for its move remains unknown, the local media reported.

Under its decision, the food processor will divest from TTV Investment-Trading JSC, which owns the F&B Chuk Tea & Coffee chain. KIDO is holding a 61% stake in TTV.

In March 23, KIDO planned to expand the Chuk Chuk chain to up to 300 stores at the end of 2022. Tran Le Nguyen, general director and vice chairman of the firm, said Chuk Chuk would start its operations in some northern provinces and cities such as Hanoi, Haiphong, Quang Ninh and Bac Ninh in May.

In July this year, Chuk Chuk Ice Cream – Coffee – Tea was renamed Chuk Tea & Coffee and expanded its reach to northern Vietnam. However, the chain seemed to produce certain positive business results for KIDO.

In the third quarter of 2022, KDC posted over VND3.2 trillion in net revenue, up 26% year-on-year.

Closing the trading session today, December 20, KDC reversed course to make a slight rise of over 0.3% and reported a matching volume of 820,000 shares.

On the HCMC bourse, market breadth was negative as losers outnumbered winners by 362 to 79. The VN-Index slid 15.27 points, or 1.47%, from the session earlier, at 1,023.13, extending its falling streak to a third straight session.

Over one billion shares worth VND17.5 trillion changed hands, up 9% in both volume and value, against the previous session.

Many big-cap stocks such as lender VCB, retailer VRE, fuel stock GAS and consumer goods producer MSN underperformed.

Steelmaker HPG made a sharp decline, but took the lead by liquidity on bourse with over 45.5 million shares changing hands.

The HNX-Index of the Hanoi exchange continued its downtrend to lose 4.71 points, or 2.22%, from the session earlier, at 207.53, dragged by many bluechips.

Securities firm SHS fell into negative territory, but became the most actively traded stock on bourse with 36.7 million shares changing hands.