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Vietnam Shares End Down 3.7% On Concerns Banks Will Limit Credit

HANOI -(Dow Jones)- Vietnamese shares ended down Monday, with local players selling after the State Bank of Vietnam said the banking system's total outstanding loans rose 33.3% in the first 10 months of this year, sparking concerns that banks will soon limit lending.

The stock index finished down 3.7% at 534.09.

"The SBV has often insisted that it cap the total lending growth at 30% this year, therefore many banks are likely to reduce their lending soon," said an analyst with state-run Agribank.

"If banks were to limit lending, the stock market will face a deep correction soon," the analyst added.

Among top decliners were Bao Viet Holdings, which ended down 5% at VND32,300, Vietinbank down 4.5% at VND31,500 and Saigon Securities down 4.5% at VND84,800.

The market has lost 3.9% the past two trading days and is down 14.5% for the past 12 sessions.

"Share prices are likely to fall further this week because many players are starting to leave stocks for property (investment)," said analyst Nguyen Van Thinh of Click&Phone Securities.

Volume was 47.7 million shares valued at VND2.1 trillion, lower than the average volume of 61 million shares and value of VND2.86 trillion for last week, Thinh said.

As market participants don't expect any major fresh positive news this week, the key index is expected to drop to 510 soon.

-By Nguyen Pham Muoi, Dow Jones Newswires, 84-435-123-041; phammuoi.nguyen@ dowjones.com

  (END) Dow Jones Newswires
  11-08-092354ET
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