Fuel prices were slashed late last week in line with
global oil, impacting the domestic stock market yesterday as the
VN-Index closed at 370,8 points, down 3.06 per cent.


More than 10.6 million shares were traded with a total
turnover of VND311 billion. Of the 164 listed shares and fund
certificates, HCM City Stock Exchange saw 11 advancers, 61 losers, 15
remained unchanged and two were inactive.


Of the 10 largest market capitalisation in the market,
there were 9 losers, one remained unchanged. FPT, PCC, PVD and SSI hit
floor prices.


FPT of the Corporation for Financing and Promoting
Technology dropped VND3,500 per share to end the day at VND40,300; VPL
of Vinpearl Tourism and Trading Company was down VND2,500 per share to
close at VND95,000; DPM of Phu My Fertiliser slipped VND2,000 per share
to stand at VND50,000; and PVD of PetroVietnam Drilling and Well
Services Company dropped VND4,000 to end at VND78,500 per share.


STB of Sacombank saw the most action with 815,010 shares changing hands before closing at VND21,400 per share.


Phan Anh Tuan, analyst of Vincom Securities, said that
the adjustment of fuel prices had become normal to investors. The
reduction of VND1,000 per litre did not significantly affect
investor-psychology. In addition, business performance results were not
in evidence; only 20 listed companies out of 300 announced their
reports.


Tuan said investors were really pessimistic. Yesterday
afternoon's move by commercial banks to lower the prime interest rate
from 14 to 13 per cent should make stock prices more attractive. With
this move, the Government also wishes to assist the local banking
system get more liquidity.


At the moment, it's too early to make positive
statements about the market's downward trend. Furthermore, the domestic
market also relies heavily on foreign investors, who are scrambling to
draw money from the market. Domestic investors will have to support
each other to make the VN-Index stand at 450 points.


According to Vietnam International Securities (VIS),
if foreign investors continue to sell out their shares, the VN-Index
will be negatively affected. The number of companies with good business
performance results remains low thus the VN-Index was hard pressed to
bounce back this week.


In Ha Noi, the HASTC-Index dropped slightly 2.22
points to close at 123.1 points. More than 6 million shares were traded
with a total turnover of VND165 billion.


The northern bourse saw 34 advancers, 110 losers, 3 remained unchanged and 6 were inactive.