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Electric-sector stocks, long viewed as a defensive “haven” due to stable electricity demand, have instead come under sharp selling pressure, surprising investors with a broad, synchronized decline. During the April 23–24 trading sessions, multiple electricity-related tickers fell hard, and several names hit the floor price, indicating strong short-term panic despite a relatively less negative broader market backdrop.
On April 23 and April 24, many electric stocks declined sharply, with several tickers—such as QTP, POW, and HDG—down about 3–5%. Some stocks experienced heavy selling, with large floor-offer backlogs persisting to the close.
PC1 illustrates the severity of the move. On April 23, PC1 declined to the floor with 14.6 million shares on the floor at the close. On April 24, the stock again fell immediately to the floor price of 22,450 dong per share at the open, as selling orders accumulated.
In the eight trading sessions following the initial drop, PC1 had lost more than 11% in value. April 23 was described as the strongest day of downward momentum, with most electric stocks trading in the red, while the VN-Index remained green—highlighting a clear divergence between the electricity sector and the broader market.
Market participants pointed to several factors behind the sell-off, including valuation pressure and rising operating costs, alongside changes in investor expectations and portfolio rotation.
In 2025, electric stocks reportedly rose strongly, with an average gain of around 16%, pushing valuations to high levels. As 2026 began, many assessments suggested these valuations had already priced in growth prospects, leaving limited room for further upside—making profit-taking pressure harder to avoid.
Recent analyses indicate the sector is shifting from cost optimization toward prioritizing energy security, which increases both investment and operating costs. Fuel prices—especially LNG—are also influenced by global geopolitical developments, adding risk to profitability.
Generation mix and weather effects also matter. The El Niño cycle could reduce hydroelectric output, potentially forcing the system to dispatch more expensive thermal power, which would directly affect margins.
While the sector’s demand outlook remains supportive, it is described as highly differentiated across firms. Electricity demand in 2026 is forecast to grow 8.5% to 15%, but the benefits may not be evenly distributed. Companies with a favorable generation mix or better power purchase agreements are expected to gain more, while others could face margin pressure.
Psychological and technical factors are also cited. When flagship stocks fall sharply—especially with unusual liquidity—sell-off effects can spread in a market with a large retail investor base. In this context, investors may liquidate positions at all price levels, turning a normal correction into panic selling.
Despite the current weakness, the article argues the decline does not necessarily indicate long-term sector deterioration. Electricity remains essential, and longer-term growth prospects are supported by demand tied to economic growth. Vietnam is forecast to maintain around 10% annual growth in electricity demand in the mid term, alongside a shift toward renewables and LNG.
Against that backdrop, the correction is framed as a market repricing—potentially removing speculative factors and bringing prices closer to more reasonable levels. For long-term investors, the article suggests the current period could be used to screen and accumulate solid players.
According to BSC Research, electricity is among the standout sectors expected to lead growth and attract capital in the near term. The sector is entering a phase of capital deployment after a prolonged lull, driven by two main factors: completing the legal framework and ensuring energy security.
BSC Research notes that implementing the VIII Power Plan requires the government to accelerate investment in 2026–2030, implying that many generation and grid projects will be restarted and creating a new growth cycle for the sector.
A highlighted opportunity is the collaboration to build the Ninh Thuan nuclear power plant with a scale of 25–30 billion USD, which could open substantial opportunities for electrical construction firms. The article expects electrical construction companies to benefit earliest through an improved backlog and rising construction demand.
On the operations side, power-generation companies are expected to benefit from streamlined procedures, which could shorten capital lock-up and improve investment turnover.
The biggest risk identified is the retail electricity price adjustment mechanism. If power prices do not keep pace with input costs, margins may shrink and late-payment risks could rise.
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