Last week was a turbulent time for the stock market,
with high and low points, as local investors reacted to the dramatic
global economy.


Early in the week, fears of a spreading credit crunch
were reassured as global finance ministers joined forces in pumping
money into commercial banks while keeping interest rates low.


Thanks to positive business performance reports from
big listed firms, both the VN-Index and HASTC-Index bounced back
impressively.


As the week drew to a close, however, fears returned
as US economic indexes such as retail and business environment, came up
negative. This led to massive world-wide sales, causing Vietnamese
investors to be cautious in securities investment.


On Friday, petroleum distributors reduced the domestic
petroleum price by VND500 per litre to VND16,000. The reduction was
minimal compared to the plummet of the global oil price to under US$80
per barrel.


The VN-Index closed the week with a slight rise of
0.51 per cent to 382.51, with 107 of 164 listed shares and fund
certificates gaining points.


Prominent gainers of the week included small stocks
such as VIS of Viet Nam-Italia Steel, up 26.54 per cent to VND26,700,
SAF of Safoco Foodstuffs, up 22.99 per cent to VND23,000, and VGP of
Vegetaxco Port, up 21.60 per cent to VND25,900.


Meanwhile, blue chips like ITA of Tan Tao Industrial
Zone, NKD of North Kinh Do and SJS of Song Da Urban-IZ
Investment&Development plunged, keeping the rise of the VN-Index
low.


At the end of the week, market volume peaked at 70.1
million shares worth VND2.12 trillion (US$126.19 million). This was a
reduction of 8.6 per cent in volume and 7.9 per cent in value from the
previous week.


Familiar codes of STB of Sacombank, SSI of Sai Gon
Securities Inc, HPG of Hoa Phat Group, and DPM of Phu My Fertilisers
saw the most action. STB saw the most with 8.99 million shares changing
hands, while other codes witnessed a modest amount ranging from 2.5 to
3.5 million shares each.


According to securities analysts, local investors
began paying more attention to what was happening in the global market,
rather than what was going on in the country.


It was this attitude that led to strong rises and
falls, and the expected 400-point mark could not be reached even though
the internal situation was very supportive for securities investment,
analysts noted.


Overseas traders last week continued selling more than
buying. These traders bought 10.52 million shares, and sold 23.41
million, according to Kim Long Securities' data.


According to a recent Viet Nam Golden Securities'
report, sales from this sector aimed to mobilise capital for
reinvestment in the local exchange, while they could not make more
money in their home markets.


The Viet Nam Association of Financial Investors said
that foreigner sales are a reaction to the US economic recession, as
well as the global credit crunch.


Eighty per cent of investment funds in Viet Nam are closing, according to VinaCapital's data. - VNS


But sales should not influence the amount of overseas capital in the Vietnamese market, according to the association.


Looking north to Ha Noi, the HASTC-Index last week rose 4,53 per cent to 125.32, backed by three of five sessions ending up.


Biggest gainers in this centre were PJC of Petrolimex
Ha Noi Transportation and Trading, up 29.73 per cent to VND19,200, NGC
of Ngo Quyen Processing Export, up 27.63 per cent to VND19,400, and HNM
of Ha Noi Milk, up 27.17 per cent to VND11,700.


Big stocks like ACB of Asia Commercial Bank, VGC of
constructor Vinaconex Group and KLS of Kim Long Securities, last week
avoided strong declines, which helped the HASTC-Index earn more points
than the VN-Index.


Although these large market-capitalised codes recorded
the biggest trade volume, the amount was not enough to bring total
market volume over the previous week.


For the whole week, the northern centre witnessed 36.9
million shares worth VND1.06 trillion ($63.15 million) change hands,
which slipped 20.5 per cent in volume and 22.25 per cent in value.


According to Vincom Securities, this week what happens
in the local stock exchange will continue following global markets'
movements. This means the market will likely fluctuate around 366 and
400 point marks.