Vietnamese Stocks Decline Even After Interest Rates Cut

10.07.2017

Vietnam’s VN Index falls 1.5% as of 1:44 pm local time, heading for biggest decline since Dec. 20.

  • “The only major news today is the rate cut, but that’s typically supportive, so I think more than anything, it’s just profit- taking after recent increase,” says Tyler Cheung, director of institutional clients at ACB Securities
  • “There could be a short correction period, but it won’t be prolonged because good fundamentals on the market are still there and valuations are reasonable compared with regional peers”: Cheung
  • Biggest drags on benchmark gauge include Vinamilk -1.7%, Vingroup -2.4%, Vietcombank -1.6%
  • VN Index up 16% YTD, reaching 9-year high on July 6
  • Related story: Vietnam’s Rate Cut May Spur Growth Amid Credit Worries

Source: Bloomberg    Photo: CBR Investment Ltd.