Index retreats, volumes stay high

Hanoi (VNA/VNS) - Two days of gains were not enough to help the domestic stock
market establish an upward trend, as the HCM Stock Exchange returned to its losing
ways on March 12.

The VN-Index retreated 4.84 points to close at 251.01, a loss of 1.89 percent.

The day witnessed 122 gainers and 34 decliners, with volumes remaining high - up 13
percent from Wednesday's two-month high to 19.3 million shares. Combined value of
the day's trades was 313 billion VND (18.4 million USD).

Most active shares included Sacombank (STB), with 3.5 million changing hands, and
Hoa Sen Group (HSG), with 1.5 million.

Foreign investors were net sellers of 1.4 million shares on March 12, worth 27.2
billion VND (1.6 million USD).

Nguyen Van Thuan, director of the accounting, finance and banking department at HCM
City Open University, said now was a suitable time for investors to restructure
their investment portfolios.

"In a context of a tough business climate and declining stock market, it's clear to
see which companies are performing effectively and which aren't," Thuan said.

Thuan suggested further investor caution, however, as there were not yet any signs
that the market had touched its rock bottom, and the performance of many listed
firms was still worrying.

The stock market was still one of the most attractive investment channels,
especially for long-term investors, with "good liquidity compared with some other
markets," said Nguyen Thai Ha, securities investment director at the Saigon-Hanoi
Fund Management Co.

"There is a rule that investors should calculate that the stock market - a market of
sentiment - will rally three to six months prior to economic recovery," Ha said.
"The economy will continue to face difficulties until the global economy recovers."

Ha said the fund management company was now "interested in shares with good inherent
value and high safety," such as pharmaceuticals.

In Hanoi on March 12, the HASTC-Index also slid 2.99 points, or 3.31 percent,
to end the day at 87.47. Trading volume fell slightly to 9.5 million shares with a
turnover of 156.8 billion VND (9.2 million USD).

Asia Commercial Bank (ACB) led the northern market with 1.7 million shares changing
hands, followed closely by Kim Long Securities (KLS) at 1.4 million.-Enditem