The VN-Index dropped for four consecutive days last
week, as investor worries deepened about increasingly gloomy economic
conditions and the business prospects for listed companies.


Recent government efforts to help firms and investors
survive the hard times, including a cut in diesel fuel prices, a delay
in implementation of the new income tax law and subsidised-interest
loan programme for enterprises, were met with general indifference on
the stock market.


The VN-Index lost 7.12 points overall to end the week at 274.51, a 2.52-per-cent drop from the previous Friday's close.


Activity remained sluggish, as trading volume averaged
just 6.55 million shares per day, off 0.6 per cent from the previous
week's average. Daily trading value reached about VND126.9 billion
(US$7.5 million), a fall of 11.5 per cent.


Foreign investor transactions were modest, with about
10 million shares changing hands on the week. Foreigners were net
sellers of 1.6 million shares, with a net value of nearly VND30 billion
($1.76 million).


Shares in the tourism and entertainment sector
declined the most last week, dropping 5.14 per cent, according to FPT
Securities data. This was followed by industrial goods and services,
down 4.19 per cent, and food and beverages, down 4.03 per cent.


Resources shares bucked the trend, gaining 4.53 per
cent, alongside shares of automotive and spare parts, up a scant 0.72
per cent.


"Trading has become gloomy in recent sessions,
demonstrating investor hesitation in the face of mixed signals about
domestic economic prospects," VNDirect Securities Co said in a report
on Friday.


Listed firms continued to publish poor business
results last week, discouraging investors, said FPT Securities analyst
Nguyen The Dinh. Investor sentiment was significantly affected by some
firms being put under observation, including blue chip Refrigeration
Electrical Engineering Corp (REE).


"Investors are still very cautious and hesitant," said
VNDirect Securities analyst Le Tuan Anh, adding that activity was
concentrated on a few blue chips. "Investors are in a waiting mindset
in the face of mixed market developments and speculation based on
little good news in the horizon. The market therefore will hold steady
with a tendency to gradually decline."


Dinh noted that shares of many firms that had good
performance were now very attractively priced, and there were new
long-term investors joining the market. He expected the VN-Index to
range between 260 and 282 points this week.


In Ha Noi last week, the HASTC-Index closed at 90.94
points after sliding 1.85 per cent during the week. About 3.15 million
shares changed hands per day, on a daily turnover of about VND64.5
billion ($3.8 million).


The index was expected to range between 84 and 93 points this week, Dinh said.