Share prices hit new lows yesterday on the HCM City Stock Exchange, as the VN-Index fell further below the 300-point mark.


The VN-Index dropped 10.99 points, or 3.67 per cent,
to close at 288.69. Trading volume reached 12 million shares on a
turnover of VND287 billion (US$17.4 million), while the day witnessed
140 losers and only 11 gainers.


Activity continued to be sluggish in most codes,
except for Sacombank (STB) which generated orders for 2.7 million
shares. Runner-up Saigon Securities Inc (SSI) saw only 827,000 shares
changing hands.


Foreign investors were net sellers of about 400,000
shares, worth VND17 billion (about $1 million). Bui Van Quang, director
of SME Securities' HCM City branch, said that now that the VN-Index has
lost about 70 per cent since the beginning of the year, investors were
no longer surprised about the Index falling below the 300-point mark.


In the dark


"Investors are still in the dark about how long it
will take the market to rally, so they are reserved about buying in,"
Quang said. "Sellers, meanwhile, are selling in droves.


"Market liquidity, as a result, remains modest."


Quang said investors were currently keeping an eye on
world economic developments and waiting for an official decision on
whether to delay the new tax on capital gains from securities trading,
as well as for listed firms' fourth-quarter business results, before
making further investment decisions.


Analysts at EuroCapital Securities said that, while
the US economy was troubled with increasing unemployment and major
automakers were on the verge of bankruptcy, moves by domestic
policymakers last week, from cutting the prime rate to easing fuel
prices, had little positive impact on the stock market.


The analysts expected Vietinbank's pending IPO this
month, alongside Japan's decision last Thursday to freeze official
development assistance (ODA) to Viet Nam, might have a greater impact
on the domestic stock exchange.


"In the context that the on-going economic
difficulties and with almost no major investor transactions to spur the
market, a rebound is not expected," Ha Noi Securities said in a report.


In Ha Noi yesterday, the HASTC-Index closed 3.31 per
cent lower at 100.11 points, with 126 codes declining and 15 advancing.
About 6.4 million shares changed hands for a total value of VND136.5
billion ($8.3 million).


The northern exchange also saw modest trading, as
activity concentrated on Asia Commercial Bank (ACB), with 1.4 million
shares traded. Kim Long Securities (KLS) was next with only 675,000
shares, followed by Vinaconex Group (VCG) with 596,000.