HCM City stocks fall on sluggish trading

Hanoi (VNA) - The VN-Index slid 1.43 points, or 0.46 percent, to close at 311.91 on
Jan. 5 as trading remained sluggish. Volume on the HCM Stock Exchange was only 7.3
million shares, worth 190.6 billion VND (11.2 million USD).

Saigon Securities Inc (SSI) was the most active share on the day, although with only
717,000 traded.

Hanoi Securities wrote in a report on Jan. 5 that official policies issued to
stabilise the economy and support market growth had failed to motivate investors.

"Actual moves show that mixed developments will continue in the short term," the
report said. "With foreign clients accelerating purchases over the last few weeks,
investors should have a more long-term view."

Foreign investors were net buyers of 710,000 shares in Jan. 5's trading, with a net
value of 26.3 billion VND (1.5 million USD).

EuroCapital Securities analysts said that the domestic economy in 2009 would see
significant impacts from the global economic downturn, especially reflected in
slowed growth of gross domestic product, exports and business performance.

These conditions would hinder stock market development, they said, predicting
further monetary and fiscal policies related to interest rates, exchange rates and
taxes to be applied this year in an ongoing effort to stabilise the economy as well
as the stock market.

Trang An Securities chairman Le Ho Khoi said this year would offer opportunities to
securities investors as share prices have slumped deeply. Meanwhile, gold and
foreign currency markets were still fraught with risks, and the real estate market
remained stagnant.

"Of course, investors should only expect reasonable profit levels," Khoi cautioned.

Vincom Securities chairman Dinh Quang Nuong said that capital flows into the
domestic stock market this year were "an unknown", noting that 2008's ups and downs
had made domestic investors highly cautious, while "foreign investors had many
concerns outside Vietnam."

"In 2009, the stock market may not growth strongly, but it will develop in depth,"
said Nuong. "Market development is not reflected only in stock indices, but also in
investor experience."

In Hanoi , the HASTC-Index closed 0.66 percent lower at 103.78 points on a
trading volume of 3.4 million shares and a turnover of about 68 billion VND (4
million USD). Most-active share Asia Commercial Bank (ACB) generated orders for only
585,000 shares.-Enditem