DCDS – 02/2024
In February, the VNIndex surged by 7.6%, closing at 1,252.7 points, surpassing the 2023 peak and marking four consecutive months of growth. Liquidity saw a significant boost, surging by 24.8% compared to the previous month, reaching over VND23,000 billion across three exchanges and was also the highest liquidity level in the past two years. The month saw robust performances across various sectors, notably IT (+13.0%), Chemicals (+15.8%), Exports (+10.9%), Materials (+10.3%), and Banking (+9.2%).
These sectors, prominently represented in DCDS portfolio, drove solid returns for the Fund, up by 8.1% against the VNIndex’s 7.6%. Specifically, IT sector saw a notable uptick fueled by FPT’s impressive 14.1% surge. Additionally, DGC (+23.8%) and HPG (+11.8%) led the charge in Materials and Chemicals, while banks continued their upward trajectory post strong Q4/2023 performances with TCB (+23.6%), CTG (+12.8%) and BID (+10.8%) leading the pack.
Amidst these dynamics, the Fund proactively adjusted its portfolio by reallocating stocks that had achieved expected growth and slightly reducing the proportion of Residential (11.5% NAV at the end of Feb) while increasing stakes in Banking (29.8% NAV), Technology (11.9% NAV) and Industrial park (5.0% NAV). This agile approach contributed to the Fund’s impressive growth of 12.0% by Mar 5, 2024, narrowing the gap with the VNIndex’s 12.4% increase over the same period.
On February 28, the Prime Minister affirmed the government’s strong determination to upgrade the stock market to an emerging market status and directed relevant ministries to urgently deploy solutions to remove barriers to enable Vietnam to achieve market upgrade by 2025.
