Vietnam ETF Tries to Stage a Comeback (VNM)
The Market Vectors Vietnam ETF (NYSEMKT: VNM) has had a volatile week. After all, the Vietnamese markets have been under pressure from a growing debt and a slowing of growth, but the arrest of a top banking figure and businessman Nguyen Duc Kien has really sent things into a frenzy. The loss on Thursday was about 7%, with Vietnam having been down about 10% for the week.
What is interesting is that Vietnam is supposed to be one of the few markets that is still showing an upward trajectory in 2012. Its labor is cheap and more and more companies are opting for textiles to be made there. Even China uses Vietnam for producing some goods.
The arrest charges were vague and all it signals to Westerners is that more arrests, seizures or regulatory chances could upset that status quo in the future. As usual, it is all speculation or fear driving the market at first.
Shares of the Market Vectors Vietnam ETF (NYSEMKT: VNM) are trying to stage a comeback on Friday with gains of 2.8% to $16.88 against a 52-week range of $14.15 to $21.28.
This exchange traded fund is run by Van Eck Global and it has some $275 million in assets under management, but we would note that this ETF does often have a different premium or discount to its net asset value when compared to many ETFs.
Shares were trading at $8.28 just on Monday and shares had fallen to $16.42 as of Thursday's close.
JON C. OGG
Filed under: 24/7 Wall St. Wire, ETFs & Mutual Funds, International Markets Tagged: VNM