SSC Mulling Over Widening Stock Trading Band
The State Securities Commission (SSC) is considering a plan to increase the stock price trading band in order to restore the liquidity of the local stock market, the Securities Investment newspaper said quoting Nguyen Son, head of SSC’s Market Development Committee said.
The commission will make a decision and announcement soon, Son said.
In recent trading sessions, the stock market has showed the signal of recovery on investors' hope of the increase in trading band and the optimism that share prices are now too cheap to buy in, state media said.
During soaring inflation, many investors have resumed buying in shares as many prices have fallen below the book value, with low P/E ratio, Son said, adding that the market may bounce back by the end of this year.
However, Son warned that investors should be cautious about the increase of penny stocks as it may be a trap for inexperienced investors.
The VN-index closed up 1.02 per cent to 378.2 points on June 16, the second trading sessions witnessing the share price increase. (Securities Investment)
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