Why Active Bond ETFs are Sparking Mania Among Investors Chasing Outsized Gains

An investor looks at stock prices on a smartphone at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Petrolimex stock surged nearly 5% to pace advancers as Vietnam's benchmark VN-Index extended its winning streak to four straight sessions.

Vietnam's stock market closed higher for the fourth day in a row this week. Energy company Petrolimex saw its share price spike almost 5% to lead the advance.

Vietnamese Stock Market Continues Upward Momentum

The Vietnamese stock market recorded gains for the fourth straight session this week, buoyed by strong performance from large-capped stocks. The benchmark VN-Index closed at 1,279.89 points, up 0.24% from the previous session.

Steady Climb for Vietnamese Stocks

The VN-Index has steadily climbed over 3% during the past four sessions. High trading volumes on the Ho Chi Minh Stock Exchange underscore investors' interest in Vietnamese equities. However, trading volume decreased 10% from the previous session.

Several factors are driving gains in Vietnamese stocks:

• Economic growth prospects as Vietnam recovers from COVID-19
• Business-friendly policies instituted by the government
• Privatization of state-owned enterprises
• Rising middle class with appetite for stocks

Market analysts remain bullish on the outlook for Vietnam's stock market as more firms list on the country's exchanges.

Top Gainers Led by Petrolimex

The top advancing stocks were led by energy firm Petrolimex (PLX), whose shares soared nearly 5%. Investors cheered the company's strong quarterly earnings underpinned by rising demand for petroleum products.

IT giant FPT Corporation's (FPT) stock also posted impressive gains, closing up 3.7%. FPT benefited from robust demand for its digital transformation services.

Other notable gainers included Vietnam Rubber Group (GVR), which makes tires and rubber products. Its shares advanced 1.2%.

POW and MWG Among Stocks Retreating

Among stocks declining, Petrovietnam Power Corporation (POW) shed 2.3%. Investors grew concerned about the potential impact of rising coal and gas prices on the electricity producer's profit margins.

Brewer Sabeco (SAB) saw its stock price dip 0.8% on news that the firm's vice chairman resigned from his position.

Meanwhile, shares of consumer electronics retailer Mobile World (MWG) fell 0.6% as investors took profits from the stock's recent run-up.

Foreign Investors Sell Vietnamese Blue Chips

Foreign investors were net sellers in Vietnam's stock market today, offloading a net 577 billion dong. They primarily sold shares of FPT and property developer Vinhomes (VHM).

While foreign selling pressure weighted on blue chips, it did not halt the overall market's upward momentum.

Second-Tier Indices Also Rise

Beyond the VN-Index, Vietnam's other stock indices also trended upwards. The HNX-Index, comprising mid- and small-cap stocks, added 0.19%.

The UPCoM-Index, consisting of unlisted public firms, performed even better - surging 0.37% for the session.

With positive momentum across the board, Vietnam's stock market looks poised to scale new highs in coming weeks.

Conclusion: Favorable Environment for Vietnamese Stocks

In 2023, analysts foresee Vietnamese equities benefiting from a favorable macro backdrop. Strong economic expansion, a burgeoning middle class, and increased foreign investment could catalyze gains for stocks across sectors.

Savvy investors should capitalize on Vietnam's equity bull market by buying shares in leading companies with competitive advantages and sound finances. Stocks like FPT, Petrolimex and Vinhomes that dominate their respective industries appear particularly well-positioned.

The ongoing development of Vietnam's capital markets also expands the listing and fundraising options for local firms - providing more winners for investors to choose from. By selectively investing in Vietnam, global investors can profit from one of Southeast Asia's most vibrant and promising emerging markets.

Let us know your thoughts on investment opportunities in Vietnam's stock market by leaving a comment. Check back for more analysis of top stocks like Petrolimex and FPT Corporation.