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SSC says no change of daily trading bands
The State Securities Commission (SSC) this morning stated that the commission is not thinking of narrowing the daily trading bands at this moment, despite the stock market’s falls.
“SSC is still closely watching the performance of the stock market, while it has no plan to adjust the daily trading bands at this moment. The daily trading bands of +/-7% for the Hanoi Securities Trading Centre (HASTC) and +/-5% for the HCM City Stock Exchange (HOSE) will stay in place,” Son said.
The statement was released after three consecutive falling trading sessions. Investors have become worried about a major influence of the US financial crisis on Vietnam’s market. Son said that some experts have predicted that SSC would narrow the daily trading bands in order to prevent stock prices from falling sharply.
Local newspaper Thoi bao Kinh te Vietnam has confirmed that a lot of readers and investors have called and sent emails, asking the newspaper to look into reports of the possibility of the daily trading band adjustment. The investors said that SSC, as the market watchdog, needs to interfere in the market now by narrowing the daily trading bands. They said that SSC should also consider halting trading sessions. Russia has reportedly closed its stock market for the past few days.
A daily trading band adjustment was made by SSC on March 27, 2008 in an attempt to prevent stock prices from falling sharply. SSC decided to lower the daily trading bands to +/-1% from +/-5% for HOSE and to +/-2% from +/-10% for HASTC. The trading bands were later raised top +/-2% and +/-3%, respectively, on April 7, and then to +/-3% and +/-4% on June 19, and then to +/-5% and +/-7% on August 18. The +/-5% and +-7% trading bands have been applied since August 18.
Vietnam’s stock market fell continuously from Tuesday-Thursday after a slight increase in the first trading session of the week. The VN Index had dropped by 57.48 points by September 18 to 419.28 points from 476.76 points, while the HASTC Index had dropped by 26.82 points to 136.08 points from 162.9 points.
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