A strong rebound on Friday helped the
VN-Index end last week just below the magical 300-barrier, after the
HCM City Stock Exchange hit a new rock bottom earlier in the week.


The Index closed out the week at
299.54, a mere 0.14 point higher than the previous Friday's close.
Volume averaged around 9.1 million shares per day, up 17.8 per cent
over the previous week's average, but still sluggish - while daily
turnover averaged VND210 billion (US$12.7 million), an increase of 9.2
per cent.


The averages don't tell the whole
story, however. Only Friday's significantly improved volume helped the
daily average for the week from hitting a six-month low.


Activity concentrated mostly in a few
major shares, with Sacombank (STB) generating orders for 9.9 million
shares, followed by Saigon Securities Inc (SSI) with 2.8 million
shares, and Refrigeration Electrical Engineering Corp (REE) with 2.3
million.





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Little occured during the week to shore
up the confidence of domestic investors, with the Ministry of Finance
approving another cut in petrol prices as well as finalising a $1
billion economic stimulus plan - and neither move having much impact on
the market.


Foreign investors last week were net
buyers of about 300,000 shares, with a net value of VND46 billion ($2.8
million). Foreigners were net sellers in the previous week of VND188
billion ($11.4 million).


"The net buy was not significant, but it
encouraged investor sentiment," said Tran Quang Vinh, an analyst with
FPT Securities Co.


Among the few bright spots in last
week's trading, according to FPT Securities data, were shares in the
retail sector, gaining 9.1 per cent, followed by financial services, up
5.23 per cent, and chemicals shares, up 4.82 per cent. Tourism and
entertainment shares declined the furthest, dropping 3.63 per cent on
the week.


Vinh expected the market to continue to
tread water this week, ranging between 286 and 319 points. He said
market volumes would remain low on weak demand.


FPT Capital general director Phan Duc
Trung said it was unnecessary to hastily spur market demand, however.
What should be done, he said, was to intensify standards of corporate
transaparency and to develop a legal framework for securities
derivatives such as short sale, margin and option.


Vinh said a level market would
facilitate long-term investments, and he expected more money to flow
into the stock market as interest rates dropped.


"News about companies as well as the
macro-level environment is very important at this time," he said,
noting that listed firms' year-end business results, developments
related to the Law on Corporate Income Tax, and the pending initial
public offering (IPO) of Vietinbank were all of interest.


In Ha Noi, the HASTC-Index picked up 2.2
per cent over the previous Friday's close, ending the week at 105.9
points. Total trading volume reached 31.78 million shares on a turnover
of VND746 billion ($45.2 million).


Market leaders - including Asia
Commercial Bank (ACB), Petroleum Technical Services Corp (PVS) and
Vinaconex Group (VCG) - maintained stability, helping prop up the
index, Vinh said.


The index was expected to range between 97 and 14 point marks in this week, he said.