BTA
19-06-2008, 04:07 PM
|
Vietnam's
stock market, the world's worst performer this year, ended 2.3 percent
lower Thursday, the first day of an expanded trading band, as markets
fretted over double-digit inflation and a trade imbalance. |
"Investors
are taking opportunities to unload and adjust their portfolios with the
new trading band," said Lawrence Kook, chief investment officer of
Maxford Investment Management, a Hong Kong-based fund for Greater China
investors.
Spiralling prices of food
and fuel and high credit growth in Vietnam have led to seven
consecutive months of double-digit inflation, more than 25 percent in
May.
The 8-year-old stock
market has tumbled 60 percent this year after a surge between August
2006 and March 2007 when the index trebled.
Ratings agencies have
downgraded outlooks on the developing Southeast Asian economy, also
citing the fragility of the young banking system faced with a liquidity
crunch.
The Ho Chi Minh Stock
Exchange ended at 373.3 points, near the low end of a 3 percent trading
band either side, which came into affect on Thursday. The index fell
for a second day in a row after edging up in the past four sessions
under the previous trading band of +/- 2 percent.
The State Securities
Commission, the market watchdog, has adjusted the trading band several
times this year to try and halt a slump in share prices.
The smaller, over-the-counter Hanoi Securities Trading Center fell 1.2 percent on Thursday.
Vietnam's
stock market, the world's worst performer this year, ended 2.3 percent
lower Thursday, the first day of an expanded trading band, as markets
fretted over double-digit inflation and a trade imbalance. |
"Investors
are taking opportunities to unload and adjust their portfolios with the
new trading band," said Lawrence Kook, chief investment officer of
Maxford Investment Management, a Hong Kong-based fund for Greater China
investors.
Spiralling prices of food
and fuel and high credit growth in Vietnam have led to seven
consecutive months of double-digit inflation, more than 25 percent in
May.
The 8-year-old stock
market has tumbled 60 percent this year after a surge between August
2006 and March 2007 when the index trebled.
Ratings agencies have
downgraded outlooks on the developing Southeast Asian economy, also
citing the fragility of the young banking system faced with a liquidity
crunch.
The Ho Chi Minh Stock
Exchange ended at 373.3 points, near the low end of a 3 percent trading
band either side, which came into affect on Thursday. The index fell
for a second day in a row after edging up in the past four sessions
under the previous trading band of +/- 2 percent.
The State Securities
Commission, the market watchdog, has adjusted the trading band several
times this year to try and halt a slump in share prices.
The smaller, over-the-counter Hanoi Securities Trading Center fell 1.2 percent on Thursday.