The Ho Chi Minh City stock market began the week
poorly with both prices and volumes falling but analysts predict there
is more pain to come.


The VN-Index of 165 leading companies and four closed-end funds lost 7.02 points, or 1.99 percent, to close at 345.05 points.


Trading volume was down sharply at 10.7 million shares
from last Friday’s 14 million. There were 113 decliners and just 38
gainers, with 18 remaining unchanged.


Hoang Thach Lan, manager of Analysis and Investment at
SME Securities in Ho Chi Minh City, said: “Many long-term investors
think fourth quarter results could be worse than the third quarter’s.
As a result, the VN-Index could further plummet.


“They are waiting for that to buy lower,” he said.


“Day traders, meanwhile, find it hard to predict the market trend. So, they are cautious about buying.”


He said the stock market could drop further this week if there is no local macroeconomic news to prop it up.


Foreign investors were net sellers Monday to the tune of VND3.7 billion (US$218,400).


Pha Lai Thermal Power Joint-Stock Company, Vietnam’s
largest listed power firm, lost VND1,100, or 4.55 percent, to close at
VND23,100, its lowest since October 31.


Pham Quang Vinh, a member of the company’s board,
registered to sell 330,000 shares to cut down his holding to 825,000,
according to a statement on the exchange’s website last week.


Nam Viet Joint-Stock Company, a manufacturer and
trader of household wooden furniture and construction materials, rose
VND600, or 4.6 percent, to close at VND13,600. The company has
announced it will pay a dividend of VND1,200 per share on December 25.
World stocks


World stock markets fell heavily on Monday as
recession spread to Japan, overshadowing a weekend summit in Washington
that was aimed at calming the economic crisis, analysts said.


European equities plunged more than 1.5 percent as
investors fretted over a global recession that could wreak havoc on
companies around the world. Frankfurt shed 1.47 percent, Paris lost
1.88 percent and London fell 1.68 percent around the half-way stage.


In Asian stock market trading on Monday, Manila lost
1.9 percent, Seoul shed 0.9 percent, Sydney fell 2.5 percent and Taipei
was down 0.29 percent.


Despite the gloomy news, Tokyo’s stock market closed up 0.71 percent on Monday as investors hunted for bargains, dealers said.