The Ho Chi Minh City stock market Monday closed in the
red for the 10th day in a row as analysts look forward to the next
support levels as higher levels have failed to hold.


The Index opened at 244.02, a loss of 8.55 points, or 3.39 percent.



In a day of moderate trading, more than 9.6 million shares changed hands as losers beat gainers by 135 to 18.


All sectors lost, with information technology and financials leading the falls.


Foreigners Monday
continued their selling spree, dumping stocks worth over VND41.5
billion (US$2.37 million) and buying for VND32.3 billion.


Ho Chi Minh City
Securities Corporation (HSC) said in its market comment: “The HCMC
market broke below the psychological 250 level, proving it was not much
of a support line in reality.


“Now that we have
broken down the market may see some weakness over the next day or two
but we would be looking for any sign that buyers are coming back in
again.


“After all we do
expect some support above the 220 line and as this is well-known we may
see some early buyers. So we would watch the bids quite carefully from
now looking for a technical bottom. And note the number of small cap
stocks that see rallies toward the end of the trading day.”


The brokerage said it
suspected that February’s key macroeconomic numbers would improve on
poor January numbers and on a year-on-year basis, thanks to the reverse
Tet effect.


“These numbers may
encourage sentiment a little bit but we should remember that the trend
of the economy is still very weak. Even so, some investors may take
some encouragement from the numbers as they confirm there is still some
economic activity going on,” HSC said.


The company also said it has yet to see any “forced selling” from foreign funds despite the rumors.


Stock performances


Pha Lai Thermal Power
(PPC) slid VND100, or 0.6 percent, to close at VND17,600. The company
said on the exchange’s website its pre-tax profit was VND95.4 billion
($5.46 million) in January.


Full Power Joint Stock
Co. (FPC), which provides architectural and interior design,
construction and installation of electrical systems, remained unchanged
at VND19,200. The company has been placed in a watch list after posting
a loss of VND44.4 billion ($2.54 million) last year, the bourse said on
its website Monday after the market closed.


So far, 13 firms listed on the Ho Chi Minh Stock Exchange are being monitored.


Vinh Son - Song Hinh
Hydropower Joint-Stock Company (VSH) remained at VND28,100. The company
said it would pay a dividend of VND800 per share, the second payment
for 2008, on April 24.