Vietnam Market Tumble Means Cheapest Stocks in Six Months

Vietnamese stocks falling into a bear market dragged valuations to a six-month low against Southeast Asian peers as the arrest of bank officials last week fueled concern of instability in the nation’s financial system.

The VN Index fell 0.1 percent to 385.78 as of the 2:15 p.m. close in Ho Chi Minh City, the lowest close since Jan. 30. The gauge has fallen 21 percent from its high this year on May 8, more than the 20 percent some investors consider a bear market. The measure traded yesterday at 9.4 times estimated profit, the lowest level since May 25 and a 33 percent discount to the 141-member MSCI South East Asia Index, according to data compiled by Bloomberg.