The domestic stock market continued its correction phase yesterday as shares on both national exchanges lost value.

The benchmark VN-Index on the HCM City Stock Exchange was down 1.4 per cent to close yesterday's session at 447.79 points, while the trading value decreased slightly from Friday to VND930.3 billion (US$44.5 million).

Yesterday the new VN30 basket made its debut (The VN30, tracking the top 30 shares by market capitalisation and liquidity on the southern bourse, is adjusted twice a year), with Southern Rubber Industry (CSM) and Petro Viet Nam Low Pressure Gas Distribution (PGD) replacing Tan Tao Industry Investment (ITA) and Tu Liem Urban Development (NTL).
But by the close, both CSM and PGD had shed value. While CSM slid just 0.4 per cent to close at VND27,200 ($1.30) a share, PGD plummeted 4.7 per cent to finish at VND32,300 ($1.55) each.
Meanwhile, ITA was still the most active code yesterday on trades of over 6 million shares, closing up 6.15 per cent at VND6,900 a share.

Most blue chips in the VN30 declined however, pushing the Index down 1.32 per cent to 527.89 points.

In a research note, analysts at Viet Nam Investment Securities Co. wrote: "Expectations of investors seem to be reflected in recent price increases. Both stock indices enjoyed a long rising run and they need to rest now,"
"The market needs to determinie a new price range from which new cash will be lured back to the market," they noted, adding that many investors began to feel the market would not continue to rise in the short term.

However, analysts said many investors still believed in a continued uptrend, so there would be some modest rising sessions this week.

On the Ha Noi Stock Exchange, the HNX-Index also fell 1.43 per cent to close at 61.16 points on a total value of VND394.8 billion ($18.9 million).

Sai Gon-Ha Noi Bank (SHB) continued to be the most active code with more than 8 million shares changing hands but the price edged down 1.5 per cent to VND6,700 a share.

The impending 2012 business results of listed companies are expected to affect the market this week. However, so far only 67 out of 715 listed companies have posted their results before the January 20 deadline.