(Adds reaction, details)
HANOI Jan 9 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
(Reporting by Hanoi Newsroom)