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