Home » Stock » Stock market tumbles on bank executive’s arrest

The arresStock market tumbles on bank executive’s arrestt of a top commercial bank leader triggered a dramatic fall on the domestic stock exchange on August 21.

Nguyen Duc Kien, a chief executive of the Asian Commercial Bank (ACB), one of the biggest private banks in Vietnam, was detained on August 20 on a charge of illegal trading.

Both Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) saw their Vn-Index and HNX-Index tumble 5 percent on average.

After the morning transaction, HNX-Index dipped 5.32 percent to close at 66.89 points, with investors selling off ACB shares at VND24,400/share.

Meanwhile, VN-Index lost 20.72 points or 4.74 percent to 416.56, with up to 248 listed stocks tumbling, and only 9 stocks going up.

This has been the sharpest fall since the Vietnam stock market operated in 2000, according to Nguyen The Minh, a technical analyst of Ban Viet Securities Company.

He said the sudden fall will have a negative impact on transactions in the coming days.

However, he advised investors not to be pessimistic because the sell-off of shares is temporary.

Another stock market expert said that Kien’s arrest will affect not only the banking system and the stock market, but other economic sectors as well.

The investigation agency said that Kien was detained for violations in three different companies where he worked as president, and that Kien is no longer involved in management at ACB.

ACB Deputy General Director Nguyen Thanh Toai confirmed that the arrest has not affected the bank’s operations.

 

(VOV)

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