Stocks hit new lows on moderate trading

Hanoi (VNA) - Domestic stock indices hit new lows on Nov.27, as
modest activity continued on both Hanoi and HCM City markets.

The VN-Index slipped 8.2 points - a loss of 2.63 percent - to close at
303.54, with 140 codes sliding and 22 advancing, Trading volume reached 12.8
million shares on a total turnover of 343.5 billion VND (20.8 million USD).

Vu Hoai Chang, director of the SME Securities analysis department, said
that 300 points was "no longer a supporting mark" for investor. He expected
the VN-Index to plunge as low as 250 points.

"Investors are getting down on the market," Chang said, noting that some
investors who recently bought shares following global market moves had
realised little gain.

Nguyen Nhan Nghia, deputy director of the BIDV Investment Fund Management
Co, said investors were hesitant to buy due to worries about the future of
listed companies.

"They absolutely have reasons to be concerned, in the current [economic]
context," he said.

Nghia said, however, it remained safe to buy at this time, with interest
rates low and share prices depressed.

Bao Viet Securities analysts said earlier this week that banks' deposit
interest rates would fall sharply over the next few months, triggering
significant capital flows into the stock market, where " share prices are
now very attractive for long-term investment."

Nguyen Anh Vu at the HCM City Banking University suggested that
bonds - with low risk levels and settled interest rates - were a better
investment channel now than stocks, particularly in a period of modest
growth.

Prudential Investment Fund Management Co general director Pham Ngoc Bich,
however, said his company had already shifted capital from securities to
bonds at a 70/20 ratio, with the rest deposited at banks.

"If interest rates continue to fall, we will continue to invest in bonds
with money shifted from securities or banks," said Bich.

Dong A Investment Fund Management Co general director Cao Thanh Dinh said
at a seminar on securities on Nov. 26 that his company was also considering
investing in bonds, with almost no interest in securities at present.

In yesterday's trading on the HCM Stock Exchange (HOSE), only Sacombank
(STB) showed significant activity, with 2.5 million shares traded, while the
runner-up as most-active share, FPT, saw only 712,000 shares change hands.

FPT and some other major stocks, including Tan Tao Industrial Park Corp
(ITA), PetroVietnam Finance (PVF) and Pa Lai Thermal Power (PPC), continued
to hit the floor of their regulated trading bands.

Foreign investor continued to sell out of the HCM City market on Nov
27, picking up 1.3 million shares while shedding 3.2 million units. Net
sales value reached nearly 70 billion VND (4.2 million USD) for the day.

Hanoi on Nov 27 witnessed 127 gainers and 14 losers, and the
HATSC-Index shed another 1.96 percent to close at 97.61 points. Trading
volume was 7.5 million shares for a total value of value of 187 billion VND
(11.3 million USD).

Kim Long Securities (KLS) and Asia Commercial Bank (ACB) were the most
active on the northern market with more than a million shares traded each,
followed by Petroleum Technical Services Corp (PVSC) with about 900,000.
"With the HATSC-Index now having fallen below its starting-point, it's
difficult to predict a new rock bottom for the index," Chang said.-Enditem