A trader follows the trading at the FPT Securities exchange floor. The VN Index slid by 10 points to mark the third straight declining session. Photo: VNS Vietnamese shares fell for a third straight day on August 13 amid fears the country's exporters could lose competitiveness because of a sharp depreciation of China's currency.
China's central bank has devalued the yuan by nearly 5 percent this week. Vietnam allowed for a 1 percent devaluation on August 12, but investors are worried that move may not be enough to keep local producers competitive with regional rivals.
"China's decision can set a bad precedent in exchange rate management," said Nguyen Van Quy, a stock analyst at FPT Securities Company. "Investors wonder if the Vietnamese central bank will continue to adjust its exchange rate policy."
The benchmark VN-Index on the HCM Stock Exchange lost 10 points, or 1.7 percent, to close the session at 594.26 points. The index is down almost 8 percent since peaking at 640 in late July.
"I think the VN-Index will likely move to around 570 to 580 points in the short-term," Quy said.
Over 60 percent of the index's 308 stocks slumped while only 44 shares gained and 78 were unchanged. Liquidity rose slightly from August 12, totaling 126.5 million shares worth 2.25 trillion VND (103.2 million USD).
On the Hanoi Stock Exchange, the HNX-Index fell 1.6 percent to finish at 81.43 points on August 13, the lowest since May 26, 2015. Just 47 stocks rose, 145 declined and 171 were unchanged.
Trading volume dropped 20 percent from the previous session to 474.3 billion VND (21.8 million USD).-VNA
