Hanoi (VNS/VNA) - The market trend of heavy dependence on severalindividual stocks generated some volatility in last week’s trades.

Thebenchmark VN-Index on the Ho Chi Minh Stock Exchange hit a new 10-year peak at840.37 points on October 27, a record high since February 12, 2008. However,the index’s weekly gain of 1.63 percent was mostly driven by a ‘hot’ stock, theFLC Faros Construction Corp (ROS).

ROS shareprices rose 39 percent in just one week, from 141,300 VND per share to 196,000 VND(8.63 USD) apiece. In the past one month, ROS shares have risen 85.4 percent,lifting the market capitalisation of the company to above 4 billion USD.

Manyinvestors began to talk about the ‘ROS-Index,’ because its rise covered thefact of losing stocks outnumbering gainers over several sessions.

“It seemsbetter to forget about the current market movements and focus on individualstocks,” said Hieu Nguyen, a senior analyst at Viet Dragon Securities Co.

Hieu saidmany traders had experienced losses in their portfolio despite the continuousrise in the VN-Index.

Manystocks have declined compared to two months ago, including blue chips like BinhMinh Plastics (BMP), steelmaker Hoa Sen Group (HSG), HCM City InfrastructureInvestment (CII), the Southern Rubber Industry (CSM) and Quang Ngai Sugar(QNS).

Themarket witnessed positive signals in the weekend session as a lot of large-capstocks advanced along with ROS, including big banks like Vietcombank (VCB),Military Bank (MBB) and BIDV (BID), VinGroup (VIC), Vietjet Air (VJC), PV Gas(GAS) and Masan Group (MSN).

However,according to Nguyen Ngoc Lan, head of brokerage division at Agribank SecuritiesCo, the current rally is unstable given low market liquidity and overallsluggish market conditions.

“In myopinion, the market will likely experience a correction in the next fewsessions.

“Basically,the index may continue to rise, but to perceive a clearer market trend, we mustlook at cash flows in the coming sessions,” Lan was quoted as saying onthe tinnhanhchungkhoan.vn website.

Meanwhile,without support from large-cap stocks, the HNX-Index on the Hanoi StockExchange slumped 1.56 percent for the week, ending October 27 at 106.45 points.

Liquiditycontinued to drop last week with an average of 198.2 million shares worth 3.7trillion VND (162.5 million USD) being traded in the two markets per session,down 12.5 percent in trading volume and 22 percent in trading value compared tothe previous week.

Phan DungKhanh, head of investment advisory at Maybank Kim Eng Securities Company, saidshares of the banking, energy, technology, precious metals (Phu NhuanJewellery) and aviation (Vietjet, Airports Corporation of Vietnam) sectors hadroom to rise further.

Forinvestors with high risk tolerance, penny stocks would likely generate the fastestshort-term profits, Khanh said, citing shares of Khanh Hoa Mineral Water Co(VKD), whose prices had increased tenfold over the last month.

DangThanh The, head of individual clients advisory at MB Securities JSC, advisedinvestors to choose the trend-flowing strategy, by withdrawing from stockswhich have gained substantially since the beginning of the year and focusing onthe stocks showing a bullish trend in recent weeks.-VNA