Shares become volatile on dollar deposit rate cut
Shares become volatile on dollar deposit rate cut
Shares opened higher on the two exchanges this morning, after the State Bank of Vietnam cut the US dollar deposit interest rates late on Sunday.
Investors expect this move will help alleviate the pressure on the dollar/dong exchange rate and potentially raise the value of the dong.
The rate of dollar-denominated deposits offered by local banks will be cut from 0.25 per cent to zero per cent for corporate depositors from today. The cap will also be cut from 0.75 per cent to 0.25 per cent for individual depositors.
The central bank said this decision aimed to prevent hoarding of dollars in the country.
After rising in the early trading minutes, the two stock indices fell towards the end of this morning following sluggish trading.
In HCM City, the VN-Index edged down 0.44 per cent to close at 567.89 points.
The HNX-Index on the Ha Noi Stock Exchange also dropped 0.4 per cent to end at 78.4 points.
Liquidity remained very low with just 52.2 million shares, worth VND845 billion (US$37.6 million), being traded on the two exchanges.
Only 11 stocks of a total 677 stocks saw trading of more one million shares. HCM City's exchange-listed FLC Group (FLC) was temporarily leading with more than two million of its shares being traded at VND6,600 each.
The afternoon session will resume at 1pm.
