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STOCKS NEWS VIETNAM-Index up in technical rebound, Q4 outlook dim

Wednesday, 3 Oct 2012 | 1:10 AM ET

The Ho Chi Minh Stock Exchange's VN Index rose in a technical rebound by midday, as buying demand emerged after recent drops, but cash inflows remained weak as outlook for the fourth quarter is dim with most investors concerned about the macroeconomic situation, analysts said.

The index edged up 0.71 percent to 387.04 points at 0430 GMT.

"Shares rebounded technically after supply had dried up recently and the indexes had remained in over-sold territory over the past three months," said Vu Duy Khanh, head analyst at Navibank Securities.

Buying demand emerged and could lend support to a short-term upward trend. The VN Index could re-test a resistance level of 403-405, Khanh added.

"Low trading volume showed most investors hesitated to trade as the country's macroeconomic conditions have not improved yet," said Phan Hong Quang, deputy head of investment at Cement Finance Co.

"Cash inflows remain weak... The markets could not see any breakthrough in the fourth quarter," said Tran Minh Hoang, an analyst at Vietcombank Securities.

1130 (0430 GMT)

(Reporting by Vu Duy; Editing by Prateek Chatterjee)

((Hanoi newsroom +844 3825-9623)(email: duy.vu@thomsonreuters.com))

Keywords: MARKETS VIETNAM STOCKSNEWS/