UPDATE 1-Vietnam to widen trading bands to boost stock markets

Tue Jan 8, 2013 10:25pm EST

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HANOI Jan 9 (Reuters) - Vietnam will raise the trading band on the Ho Chi Minh Stock Exchange, the country's main stock market, to 7 percent next week from 5 percent now as part of market-boosting measures, regulators said on Wednesday.

The trading band on the Hanoi Stock Exchange will also be raised to 10 percent from 7 percent at present, Chairman Vu Bang of the State Securities Commission said in a statement obtained by Reuters.

The new bands will be in place as of Jan. 15, he said.

"This is a good move to boost market liquidity because the cash flow will circulate faster," said Vu Duy Khanh, head analyst at Navibank Securities.

He said brokerages would benefit most from the move, which is in line with market expectations. Higher liquidity will help raise revenues from fees charged by brokerages.

The VN Index rose 2.01 percent to 456.17 points at 0316 GMT on Wednesday, having gained around 10 percent so far this year after an annual expansion of nearly 18 percent in 2012.

(Reporting by Hanoi Newsroom)

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