Stocks fall, trading volume plunges
Stocks fall, trading volume plunges
The Ho Chi Minh Stock Exchange fell sharply Tuesday after the US Congress rejected a US$700 billion bailout plan.
The VN-Index of 160 firms and four closed-end funds gave up 22.3 points, or 4.66 percent, to finish at 456.7. Trading volume plummeted to a mere 4.7 million shares, compared with Monday’s 19 million shares. All but one of the index’s members retreated, of which 160 lost by the daily maximum limit of 5 percent.
US stocks plunged and the Standard & Poor’s 500 Index tumbled the most since the 1987 crash after the US House of Representatives rejected a $700 billion plan to rescue the financial system.
Foreign investors in Vietnam’s benchmark stock market were calm Tuesday, remaining net buyers, with a net value of VND26 billion ($1.6 million) changing hands.
“We are watching the US stock market closely,” said Vu Bang, chairman of Vietnam’s State Securities Commission, Vietnam’s stock market regulator. “The State Securities Commission will meet with the Ministry of Finance and the government to analyze the situation for any measures when necessary.”
“Vietnam doesn’t allow short-selling at the moment,” Bang said. “It’s too risky for a small market like Vietnam.”
Thanhnien
