Shares rose for a third straight day on June 7 on the HCM Stock Exchange despite reduced market volume and value.

Advancers overwhelmed decliners by 235-30, in line with another rise of 1.88 percent of the benchmark VN-Index which closed the session at 434.41 points.

Blue chips soared, with 23 of the top 30 shares by market value and liquidity rising while only three sank and four closed unchanged. The VN30 Index measuring the performance of these 30 shares also edged up by over 1 percent to 509.41.

Many shares hit the one-day limit rise of 5 percent, including heavyweight stocks such as PV Gas (GAS), insurer Bao Viet Holdings (BVH), financial Ocean Group (OGC), property developer Quoc Cuong Gia Lai (QCG) and Sacombank Securities Co (SBS).

However, market value continued to fall by 35 percent over June 6level, reaching just nearly 1.14 trillion VND (54.3 million USD) on a total volume of 71.3 million shares.

"Rallies without improved liquidity are not a reliable signals for a reversal of the trend. However, the market showed an increased demand for cheap shares," stocks analysts of Sai Gon- Hanoi Securities Co (SHS) wrote in a research note.

While many investors worried the depreciation of the Vietnamese dong could encourage foreign investors to withdraw their investments in the face of the eurozone instability, SHS analysts believed continuous decreases of interest rates in the recent time were the main reason for the downward pressure on the dong.

"On the other hand, the global ratings agency S&P revised Vietnam 's outlook from negative to stable, citing the Government's successful drive to bring down sky-high inflation. This is a positive assessment of foreigners for the domestic macroeconomic situation," they wrote.

On June7 afternoon, fuel prices were cut down again, by 700-800 VND per litre, which is the third time in just one month. Taxation on fuel imports also increased by 3 percent all around.

On the Hanoi exchange, the HNX-Index also climbed 2.83 percent to close at 75.87 points. Market volume increased 40 percent from a day earlier to 74 million shares worth 740 billion VND (35.2 million USD).

PetroVietnam Construction (PVX) is the most active nationwide on a whopping trade of 12 million shares, surging 6.19 percent to close at 10,300 VND (0.49 USD).

Foreigners were still net sellers on the HCM City exchange with a net sell of over 118 billion VND (5.6 million USD) worth of shares, but they turned to be net buyers on the Hanoi market, picking up shares worth over 8 billion VND (400,000 USD).-VNA