Shares closed down on both national stock exchanges on Oct. 17 despite opening in positive territory. On the HCM City Stock Exchange, the VN-Index lost 0.88 percent from Oct. 14 to close at 410.84 points. The value of trades rose by over 34 percent, however, to 442.5 billion VND (21 million USD), with 26.2 million shares changing hands.

Among the 10 leading shares by capitalisation, only those of food processor Masan Group (MSN) posted gains, closing up by 0.9 percent.

Eximbank (EIB), meanwhile, was the most-active share, with 1.4 million shares traded, before closing down nearly 4 percent to 14,900 VND per share.

On the Hanoi Stock Exchange, the HNX-Index lost over a percent of its value to close at 68.46 points. Oct. 17's trading remained sluggish with only 25.8 million shares traded, worth just 251.5 billion VND (12 million USD).

Kim Long Securities Co (KLS) saw the highest volume, 2.2 million shares exchanged. The share price slid 2.8 percent to 10,400 VND despite the company posting a profit for the first nine-months of the year of over 139 billion VND (6.6 million USD).

Marc Djandji, director of the analysis department of Viet Capital Securities Co, said share prices hit rock-bottom in August and haven't recovered, so at current prices, many stocks have became attractive for medium- and long-term investment.

However, volatility on the gold and foreign exchange markets has once again increased investor uncertainty, Djandji said.

In order for the market to rebound, investor confidence in the value of dong needed to be restored, he added. "The stock market will remain difficult towards the end of this year," Djandji said. "Short rallies will likely depend on stability in the banking system."

However, recent developments in the banking sector have not been favourable, with interbank interest rates soaring to 23 percent per year for one-month loans and 20 percent for a one-week term. Banks have also struggled to hold deposit interest rates to less than 14 percent per year, putting pressure on small bank liquidity. /.