The VN-Index lost 6.42 points to close at 686.49.

Of its 150 members, 85 lost and only 37 gained.

However, some buying seemed to come in the latter stages with the market recovering some of its earlier losses.

The index had fallen to more than 11 percent in the opening session.

Volumes were just over 11 million against 13 million and 23 million respectively on Tuesday and Monday.

An analyst at Saigon Securities Incorporation told Thanh Nien Daily that investors “didn’t believe in the market.”

Saigon Securities, the country’s largest brokerage, lost VND5,000 to close at a record low of VND97,000.

The Ho Chi Minh City-based company is preparing to list next month additional shares converted from 1.7 million bonds it sold last year, Hoang Thach Lan, chief analyst at the HCMC-based SME Securities Co., said.

The firm has informed the Ho Chi Minh Stock Exchange that its business was still faring well despite the market tumbling.

It reported a pretax profit of VND145 billion (US$9.2 million) in January.

Other analysts said the increasing inflation rate and absurdly high deposit rates had caused investors to shun the stock market.

“Many investors have opted to park their money in banks,” a HCMC stock investor said.

“The one-month savings rate has reached 1.1 percent.”

But he harbors hopes of recovery, pinning his hopes on Deputy Prime Minister Nguyen Sinh Hung’s statement in Thanh Nien last Tuesday that the government would prevent a market crash.

PetroVietnam Fertilizer and Chemicals, which edged up VND500 to close at VND57,000, reported that director Luu Quang Lam had raised his holding in the company to 6,118,560 shares after buying 1,172,560 shares on the market, the exchange’s website said Wednesday.

Small caps

Bim Son Packaging Joint-Stock Co. rose sharply after announcing a dividend payment of VND1,500 next month.

The stock gained VND1,200 to close at VND26,400.

“The news has heartened investors,” said Hoang Thach Lan, chief analyst at the HCMC-based SME Securities Co.

Can Tho Techno-Agricultural Supplies Joint-Stock Co., one of Vietnam’s biggest fertilizer importers, tumbled by VND4,500, or the 5 percent limit allowed per day, to VND85,500.

Relatives of two of the company’s deputy CEOs began selling Wednesday all 70,000 shares they hold.

Imexpharm Pharmaceutical Joint-Stock Co., slipped VND5,000, or 2.8 percent, to VND174,000.

The medicine producer, based in the southern province of Dong Thap, declined for the first time in three days after it said that Tran Thi Thiem, a relative of the company’s chief executive officer, will begin selling today all 7,300 shares she owned in the company.

Lam Son Sugar Joint-Stock Co., a sugar and industrial alcohol producer, gained VND1,000 to close at VND31,000.

The company said that Le Van Tam, its chairman, would buy 200,000 shares.

Foreigners still buying

Foreign investors continued to ignore local investors’ sell-off, pumping in VND62 billion ($4 million) Wednesday.

Their five top picks were PetroVietnam Fertilizer and Chemicals, Pha Lai Thermal Power, Kinh Do Group, Saigon Securities Inc., and Vietnam Dairy Product Joint Stock Company.

Of the three closed-end funds, Manulife and VF1 remained unchanged to close at VND8,400 and VND20,800, while Prudential rose by VND100 to close at VND10,300.

The Hanoi market’s HASTC-Index gained 2.77 points to close at 232.33.

However, all but 35 of its 129 members lost on a day when 4.2 million shares were traded for VND267 billion.

Reported by Hoang Uy