The Hochiminh Stock Exchange’s (HSX) proposal to raise stock trading band to 7 percent from current 5 percent
The Hochiminh Stock Exchange’s (HSX) proposal to raise stock trading band to 7 percent from current 5 percent is a part of the bourse’s comprehensive measures, not simply a temporary solution of widening limit when the market is up and narrowing it when the market is down, said Le Hai Tra, deputy CEO of STC.
The Hochiminh Stock Exchange and Vietnam’s stock market have been in existence for 12 years with certain level of development, and at certain time, investors and market need a wider trading band than the current level, Tra said.
Extending trading limits is set in HSX’s long term development strategy and besides widening the band, HSX will also study and introduce new products to meet market demand, facilitate and speed up trading, and help investors to manage risks, Tra added.
Market insiders voted for widening trading band to 7 percent, saying that the wider limit will help the market reflect share prices better, reduce share price manipulation practices, raise liquidity and liven up investors’ sentiment.
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