DCDS – 03/2024
In March, Vietnam’s stock market experienced notable volatility, primarily driven by substantial capital outflows from foreign investors, exceeding VND11,300 billion on the HSX. Despite this, daily liquidity surged, surpassing the highest levels observed in the past two years, totaling over VND29,000 billion across all exchanges, marking a robust 27.8% increase compared to the preceding month. Notably, the VN-Index maintained a resilient 2.5% growth by the month’s close.
During this period, NAV per share of DCDS Fund displayed a commendable 5.6% uptick, outperforming the market by an impressive 3.1%. Strategic adjustments were made within the Fund, notably reducing exposure to sectors that had seen significant uptrends, such as Securities and Real estate, while tactically reallocating towards companies poised for strong growth in 2024. Key sectors driving performance included Securities (+12.9%), led by notable contributors VCI and SHS, Retail (+10.8%) with standout performers DGW and MWG, and Chemicals (+8.6%), buoyed by DGC and DCM. Year-to-date, DCDS portfolio has demonstrated remarkable resilience, boasting a 16.0% increase, outshining the VN-Index’s 13.6% rise over the same period.
In the near term, profit-taking activities may exert pressure on the market, as investors capitalize on the robust performance witnessed since the year’s outset, outpacing regional counterparts such as the Philippines’ PCOMP (+7.0%), Indonesia’s JCI (+0.2%), and Thailand’s SET (-2.7%). Risks stemming from geopolitical tensions, US interest rate movements, and Fed actions remain pertinent in shaping short-term market sentiment. Prudent market observation indicates the necessity for a consolidation period before potentially surpassing the March peak. Market fluctuations present strategic opportunities for portfolio restructuring and acquisition of quality assets at discounted valuations. Our outlook remains positive, particularly regarding profit growth prospects within the Securities, Steel, and Retail sectors,…
