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'Shark' stock market also plunged because of the decline of the market

Friday - 06/07/2018 00:45
Despite the large scale, investment funds are not immune from the stock market storm.
The upside and downside volatility of the market in the first half of the year made it hard for not only retail investors, but also large investment funds to be affected.

Of the dozens of investment units active in the market, there are at least 13 companies, investment funds NAV growth of more than  -2% in the first half of 2018. In which, there are also Investment funds, which are likened to "sharks" on the stock market must also "tasted" the decline to double digits.
The level of NAV decline of investment funds
The level of NAV decline of investment funds in % unit
Leading the list was Hestia, a UPCoM-registered company. In the first half of 2018, the investment company lost 19.4% in NAV, topping the list of funds, the lowest-yielding investment company.

Another Hestia-affiliated company, Passion Investment, also ranked fourth in the list, with a 8.6 percent decline in NAV compared with the beginning of the year.

Many other internal funds are not outside this "storm" . Second in NAV, Thien Viet Fund with TVGF2 TVGF2 and TVGF1 decreased by 11.6% and 8.3%, respectively. Other funds such as Techcom Capital TCEF decreased 5.3% NAV compared with the beginning of the year, SSI SCA and VCBF-BCF together decreased 4.6%.

Big names such as Pyn Elite Fund, or billion dollar fund such as Dragon Capital VEIL, also suffered losses when they saw NAV drop 5.9% and 3.5%, respectively.

The decline of companies, investment funds that are considered "sharks" on the market, is not difficult to explain. The preferred stocks are large capitalization stocks or financial flows, which usually take a large proportion of bluechips in the VN30 basket, as well as stocks in banking and securities.

In the second half of 2017 and the first few months of 2018, these stocks are leading the VN-Index continuously peak. The investment funds also thanks to that success reverberating.

However, as the market reverses, the fastest rising stocks are the biggest losers. With the high proportion of investment, the investment funds must bear heavy consequences. Not only the results in the first three months of the year but also the profit in 2017 also corrosion.

The sharpness of the stock market is clearly reflected in the performance of key indexes in the first half of 2018. The first three months of the year, the VN Index was the biggest gainer in the world with over 19% but only three months Next, the index for HoSE also lost the equivalent to become the leading index of the world's largest drop.

As in the case of Hestia and Passion Investment, the common point of these two businesses is to invest most of their assets into VPBank's unique VPBank shares. As reported by the end of the first quarter of Passion Investment, the company spent nearly 95% of the total over 220 billion to buy 3.24 million VPB shares.

However, the movement of this stock does not hesitate Hestia or Passion Investment. VPB increased one circuit from the beginning of the year to early April reached a peak of nearly 70,000, then fell below 50,000. After dividing bonus shares and adjusting the reference price to VND 30,600, this stock continued to plunge following the general downtrend. At the latest, VPB shares are just over VND 25,000, down 40% over the peak (after adjustment).

Even the new shares such as Techcombank, which is the great fund in favor, is not outside the storm. Techcombank listed on the floor at the reference price of 128,000 dong, however this is also the highest level that TCB shares have. Up to before adjusting the bonus share, TCB dropped to over 80,000, losing nearly 40% of market price compared to the first day on the floor.

Some other blue-chips such as GAS are only VND75,000 compared to the peak in April of VND130,000, SSI is VND27,000 versus VND44,000 or MSN is VND74,000 compared to VND118,000.

Source: Vnexpress newspaper

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