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Stock trading bands to further broaden
The trading bands for transactions of stocks and fund certificates on both Ho Chi Minh City and Hanoi bourses will broaden as of August 18, according to the State Securities Commission (SSC).
The band for transactions on the Ho Chi Minh Stock Exchange (HoSE) will increase from +/-3 percent to +/-5 percent while the band on the Hanoi Securities Trading Centre (HaSTC) will widen from +/-4 percent to +/-7 percent.
SSC Market Development Department Director Nguyen Son said the decision was prompted by signs of recovery of the market. However, the trading bands can be readjusted depending on the market’s development in the future.
This will be the SSC’s fourth adjustment of the stock trading bands on both stock exchanges since the beginning of the year.
On March 27, the SSC narrowed the stock trading bands to 1 percent and 2 percent for HoSE and HaSTC respectively to stop massive sale of stocks and stabilise the market. It then raised the rates to 2 percent and 3 percent on April 7 and 3 percent and 4 percent on June 19, respectively.
Vn-Index has recently registered an increase for six consecutive trading sessions and HaSTC-Index for five consecutive sessions.
Experts say the loosening of the stock trading bands, along with positive signs in the economy such as dropping petrol price and slowing down inflation, is expected to help increase liquidity in the market.
VNN
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