An investor traces market fluctuations at the trading floor of Tan Viet Securities Joint Stock Company in Ha Noi.  — VNS Photo Đoàn Tùng

HÀ NỘI – Shares rose for a second day yesterday on the two national stock exchanges but cautious sentiment still lingered as the market trend was highly dependent on large cap movement.

On the HCM Stock Exchange, the VN-Index increased 0.66 per cent to end at 830.69 points. The key southern market index rallied 0.63 per cent on Tuesday.

On the Hà Nội Stock Exchange, the HNX-Index rose 0.67 per cent to close yesterday at 107.40 points, expanding the two-day gains to 1.1 per cent.

Many large caps continued their upward trend and supported the market.

Shares of FLC Faros Construction Corp (ROS) again led the gainers, up 6.6 per cent, extending the rallying streak to 20 sessions in a row with cumulative growth of over 59 per cent.

Other big gainers included Mobile World Group (MWG), Vinamilk (VNM), Vietcombank (VCB), Vietinbank (CTG), Military Bank (MBB), insurer Bảo Việt Holdings (BVH) with increases of between 1.3 per cent and 2.6 per cent.

They were all the top 30 largest shares by market value and liquidity on the HCM Stock Exchange.

“However, the sustainability of the market remains a big question mark since liquidity continued to taper off (to the lowest level within two weeks),” stock analysts at BIDV Securities Company (BSC) wrote in a report.

A total of 197 million shares worth VNĐ4.8 trillion (US$211.8 million) were traded on the two markets, down 11.7 per cent in volume and 28.4 per cent in value compared to the previous session.

According to BSC analysts, the market’s gains were attributable to the positive signals of large put-through (negotiated) transactions while the trading value on the exchanges continued to weaken, reflecting the hesitant sentiment of investors.

Value of negotiated trade accounted for 37.5 per cent of total trading value yesterday while this proportion was over 52 per cent of the total on Tuesday.

Meanwhile, market divergence continued to expand. Banking, securities, aviation, oil and gas stocks increased but steel and fertiliser sectors slumped and pulled the index down.

“Investor should maintain a reasonable proportion of cash and stocks and should not open new long positions when the market is not really healthy,” BSC analysts wrote in the report.

According to analysts at KB Securities Vietnam Company, the VN-Index may move in the range of 825-830 points, advising investors on the market volatile given that the market is still controlled by large cap movements. – VNS