The VN-Index followed global markets and regained a little lost ground yesterday, picking up 4.61 points, or 1.6 per cent, to close at 293.3.

However, trading volume on the HCM City Stock Exchange continued to be sluggish, falling by 26 per cent to 8.86 million shares, for a turnover of VND211.13 billion (US$12.8 million).

Most active shares included Sacombank (STB), with orders for 1.7 million shares, followed by Saigon Securities Inc (SSI), at nearly 600,000 shares, and Phu My Fertilisers (DPM) at about 520,000.

Foreign investors were net sellers of about 33,000 shares, although net sales value contracted to about VND1.2 billion ($72,700) from Monday’s VND17 billion (about $1 million).

The Viet Nam Association of Financial Investors (VAFI) said on its website that it expected firms from a wide range of sectors would soon release their monthly results, which would give investors an overall picture of the economy’s health and help stabilise the market.

"Investors are treating the market as if the [domestic] economy were falling into recession and witnessing financial crisis," commented VAFI general secretary Nguyen Hoang Hai.

"The facts do not bear that out. The economy is neither facing depression nor financial crisis. It’s just feeling the impacts of the world situation and may see slower growth next year."

Dien dan Doanh nghiep (Business Forum) quoted Luu Nguyen Chi Nhan, deputy director of the Sai Gon-Ha Noi Fund Management Co, as saying that impacts of the world economic turmoil on the domestic economy would be seen more clearly next year, particularly on exports and foreign investments.

But Nhan said his company expected to boost investments next year and was looking to both the real estate and stock markets to revive by the second quarter of 2009.

In Ha Noi yesterday, the HASTC-Index also closed 3 per cent higher, rising to 103.11. About 6 million shares changed hands for a total value of VND140.2 billion ($8.5 million).

But the northern exchange also saw minimal activity, as market leader Asia Commercial Bank (ACB) generated orders for only 1.1 million shares, and runner-up Kim Long Securities (KLS) for only 970,000 shares. — VNS