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Vietnam stocks fell sharply, total assets Tundra Vietnam Fund "volatile" 38% after only a month

Wednesday - 06/06/2018 01:22
By the end of May, the total assets of Tundra Vietnam Fund were $ 140.1 million, a sharp decrease of nearly $ 86 million from the previous month. The total assets of Tundra Vietnam Fund dropped sharply in addition to the decline in portfolio as a result of fund withdrawal. It is estimated that Tundra Vietnam Fund has been withdrawn about 65 million USD in the last month.
Tundra Vietnam Fund, one of the strongest foreign funds in the Vietnam stock market, has just released a report in May 2018.

According to the report, the net value on the fund certificate (NAV) Tundra Vietnam Fund in late May reached $ 22.6, down 9.2% over the previous month and also the second consecutive month decline. Compared to the beginning of the year, NAV Tundra Vietnam Fund has just increased 5.4%.

The worst performers for the fund in May were KDF (down 32.3%), HSG (down 28.1%), VND (down 26.8%) ... In contrast, The most active investments included CSM (up 12.2%), DXG (up 5.4%) ...

In May, the Vietnamese stock market underwent a strong correction, starting with the foreigners' profit taking and then margin calls, forced selling forced domestic investors to sell. In addition, the IPO of Vinhomes, Techcombank has led to strong selling pressure of foreign investors made the market fall deeply.
total assets of tundra vietnam fund 6 2018

By the end of May, the total assets of Tundra Vietnam Fund were $ 140.1 million, a sharp decrease of nearly $ 86 million from the previous month. The total assets of Tundra Vietnam Fund dropped sharply in addition to the decline in portfolio as a result of fund withdrawal. It is estimated that Tundra Vietnam Fund has been withdrawn about 65 million USD in the last month.
 
nav-tundra-vietnam-fund-6-2018-cophieuviet.com
NAV - Tundra Vietnam Fund


On the structure of the portfolio, DXG rose to become the largest share in the portfolio with 8.4%. The following stocks were VIC (7.3%), HPG (6.1%), SSI (6.1%), FPT (5.7%), VNM (5.5% ), ...

Previously, Tundra Vietnam Fund held a certain amount to participate in "bottom fishing". However, in the May report, the cash amount of the fund is minus 1% and Tundra Vietnam Fund is likely to use the margin.

Market valuation of reasonable level, adjustment pressure is not much

In May, foreign investors net bought about $ 1 billion in Vietnam stock market. That includes about $ 1.25 billion in the Vinhomes deal. Excluding this transaction, foreigners actually net sold $ 250 million in May. The average daily trading value in May reached $ 309 million.

According to estimates of Tundra Vietnam Fund, after the strong correction, the outstanding margin has dropped by 30-40% over the peak and is now at a more reasonable level.

Commenting on Vietnam macro-economy, Tundra Vietnam Fund said that things are looking better. PMI accelerated to 53.9 from 52.7 in April signaling a positive outlook for manufacturing in Vietnam. Inflation increased 3.86% over the same period last year, mainly due to the adjustment of petrol and food prices, but core CPI remained at 1.34% over the same period. Trade balance recorded a surplus of US $ 3.39 billion in the first five months (compared to a deficit of US $ 2.6 billion in the same period in 2017), while disbursed FDI increased to US $ 6.75 billion (up 9 ,8%).

According to Tundra Vietnam Fund, Vietnam stock market is now priced at a reasonable valuation with a forward P / E of about 17% and an estimated P / E of 14 in 2019. From 2017 to now, Vietnam stock market has Locating itself is similar to some other Asian Emerging Markets markets such as the Philippines, Indonesia and India with P / E of 18-25x. Compared with this group, Vietnam's price is still lower and not subject to much adjustment pressure.
Source: Cafef.vn

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