Shares declined on June 8 on both of the nation's stock exchanges despite the announcement of further reductions in interest rates and fuel prices.

State Bank Governor Nguyen Van Binh told the National Assembly on June 7 that the cap on deposit interest rates at commercial banks would be lowered by another 2 percent to 9 percent per year, effective June 11.

The petrol prices also reduced by 800 VND per litre to 21,900 VND as from June 7, the third reduction in the past month.

Many securities analysts said the news had been consistent with forecasts and many investors decided to use the announcements as an opportunity to sell shares at higher prices.

On the HCM Stock Exchange, the VN-Index rose to nearly 436 points in the morning before falling to 432.9 by the close of the afternoon session on June 8, a decline of 0.35 percent from the previous day's close. The value of trades was up by over 5 percent to nearly 1.2 trillion VND (53.3 million USD) while volume increased 16 percent to nearly 83 million shares.

SACOM Development and Investment Corporation (SAM) was the most-active share, with 4.2 million traded before it closed up by 1.16 percent to 8,700 VND per share.

Advancers outnumbered decliners by 131-97, while half of the 30 leading shares by market capitalisation and liquidity sank, driving the VN30 Index down by 0.25 percent to 508.15.

On the Hanoi Stock Exchange, the HNX-Index also lost over 1 percent to close at 75.08 points. Value dropped nearly 7 percent to 693 billion VND (33 million USD) on a volume of 72 million shares.

PetroVietnam Construction (PVX) was the most-active share nationwide with a whopping 8.2 million trading. It closed unchanged at 10,300 VND per share.

Foreigners again concluded the day as net sellers on both stock exchanges, responsible for a combined net sell of 30.3 billion VND (1.4 million USD). Since the beginning of this week, they have unloaded shares worth over 430 billion VND (20.5 million USD).-VNA