Vietnam index dips 1 pct on currency trading band change


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Vietnam index dips 1 pct on currency trading band change


Vietnam's benchmark VN Index dropped 1.05 percent at the break on Wednesday after the country's central bank widened the dollar/dong trading band, with most big-cap shares losing ground.
Vietnam doubled its trading band for interbank dollar/dong transactions on Wednesday, aiming to protect its exports by countering the adverse affects of a strengthening dollar and yuan devaluation, the central bank said.
Analysts and traders said the adjustment will have negative impact on the stock market in the next few sessions.
"But those effects are short-term only and the index will rebound soon," said Retail Research Manager Nguyen The Minh in Viet Capital Securities.
Top dairy products maker Vinamilk, the country's biggest firm by market value, declined 0.95 percent, Vietcombank decreased 2.55 percent and BIDV lost 2.04 percent.
Here is a snapshot of the VN Index at midday (0431 GMT). 
VN Index
PREV. CLOSE 613.05
% CHANGE -1.05%
LOW 606.32
Change (%) 1-mnth -2.269
Change (%) 3-mnth 11.126
Change (%) 1-year 1.814
52-week high 644.56
52-week low 513.06

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