Shares rose for a second day on October 25 on the two national stock exchanges (Photo: VNA)

Hanoi (VNA) – Shares rose for a second day on October 25 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 percent to end at 830.69 points. The key southern market index rallied 0.63 percent on October 24.

On the Hanoi Stock Exchange, the HNX-Index rose 0.67 percent to close on October 25 at 107.40 points, expanding the two-day gains to 1.1 percent.

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 percent, extending the rallying streak to 20 sessions in a row with cumulative growth of over 59 percent.

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

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

[Infographics: Stock market capitalisation hits record]

“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 4.8 trillion VND (211.8 million USD) were traded on the two markets, down 11.7 percent in volume and 28.4 percent 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 percent of total trading value on October 25 while this proportion was over 52 percent of the total on the previous day.

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.-VNA