Investment funds report poor performances in February

Latest reports from investment funds in February show they have suffered from the decline of the market amid the global spread of coronavirus, or COVID-19.

Investment funds report poor performances in February

Visitors at Hue Citadel, Thua Thien-Hue Province. The COVID-19 pandemic has caused severe damage to Viet Nam's tourism sector and sent investment funds' performance down in February.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange has lost a total of 23.1 per cent between January 30 and March 14 when the stock market re-opened after the Tet (Lunar New Year) holiday.

The tumble of the Vietnamese stock benchmark concurs with the strong selling of foreign investors, which has reached a total net value of nearly VND4.73 trillion (US$203.6 million) during the period.

In February, the VN-Index was down a total of 5.81 per cent and foreign investors net-sold a total of VND3.15 trillion.

Worries about COVID-19 and its impact on the global economy and people’s health, and late responses of governments triggered a large-scale sell-off around global markets and pushed indices down.

Investment funds have seen their net asset value (NAV) fall sharply during the time.

The Finland-based PYN Elite Fund announced its February performance fell 2.72 per cent on a monthly basis, recording the worst February performance since 2011.

The Hong Kong-based AFC Vietnam Fund recorded a loss of 3.9 per cent in February performance. The Swedish fund Tundra Vietnam Fund saw its portfolio value drop 3.1 per cent last month, raising the total loss to 7.8 per cent in the first two months of the year.

The poor performance was attributed to the strong decline of investees that account for a large proportion of the fund’s portfolio such as the HCM City Infrastructure Investment JSC (CII), the Vietnam Engine and Agricultural Machinery Corporation (VEA) and Mobile World Investment Corp (MWG).

Travelling and immigration restrictions have brought some damage to local industries such as aviation, tourism, energy and exporting agriculture, according to PYN Elite Fund.

 

In the January-February period, Viet Nam’s agriculture exports fell 4.3 per cent to $2.5 billion. The local Manufacturing Purchasing Managers’ Index (PMI) dropped to 49 in February from 50.6 in January as orders declined and production costs went up due to the disruption of the global supply chain.

Despite being surrounded by difficulties, foreign funds are still optimistic about the future prospects of the local assets.

AFC Vietnam Fund said in a report the pandemic will cause damage to the global stock markets in one or two quarters and the worst-hit sectors are likely tourism and hospitality.

But losses will be covered quickly in the second six-month period of the year as Vietnamese shares are now cheaper than they were at the beginning of the year.

Viet Nam’s economic growth is forecast at 6.0 per cent in 2020, down from 7.02 per cent made in 2019. But the growth will still be stronger than some others, the fund said.

The Government will have policies to support the hard-hit sectors such as tourism and manufacturing, which contributed 12-20 per cent of the total GDP in 2019, and restrain the damage caused by the pandemic.

The moving of factories from China will help raise Viet Nam’s GDP growth by additional 2 per cent and the ratification of the Europe-Viet Nam Free Trade Agreement (EVFTA) will boost Viet Nam’s exports to the European markets by 42.7 per cent in the next five years. – VNS

Stock market volatility expected amid coronavirus next week

Stock market volatility expected amid coronavirus next week

Even in a rebounding scenario, the VN-Index on the Hochiminh Stock Exchange is expected to experience wild volatility and revisit a support range of 710-740 points next week, according to Bao Viet Securities.  

Vietnam’s stock market has tough time in February

Vietnam’s stock market has tough time in February

The Vietnamese stock market had a tough time throughout February with most stocks weakening amid concern about the global spread of the coronavirus disease(COVID-19).

 
 

Other News

.
EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
BUSINESSicon  08/07/2020 

State financial support for companies hit hard by the Covid-19 pandemic, regardless of the level they are yet, and subject to the Government’s consideration in terms of budget range and macroeconomic stability, 

Private sector involvement proposed in Chu Lai airport project
Private sector involvement proposed in Chu Lai airport project
BUSINESSicon  07/07/2020 

The authority of Quang Nam Province has proposed that private investors be allowed to participate in the construction, management and operation of Chu Lai airport, similar to the investment model adopted for Van Don airport in Quang Ninh Province.

Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
BUSINESSicon  07/07/2020 

According to Fitch Ratings, Vietnam is positioned to stand out among Asia’s frontier and emerging markets this year as a result of its economic resilience and success in bringing the novel coronavirus pandemic under control.

Vietnam’s bond market posts highest growth in emerging East Asia: ADB
Vietnam’s bond market posts highest growth in emerging East Asia: ADB
BUSINESSicon  07/07/2020 

The local currency (LCY) bond market in Vietnam posted the highest growth in the emerging East Asia region, as authorities took fiscal and monetary policy actions to mitigate the economic fallout from the coronavirus pandemic.

China is largest plywood investor in Vietnam
China is largest plywood investor in Vietnam
BUSINESSicon  07/07/2020 

China has invested in 29 plywood projects worth over US$150 million in Vietnam, becoming the country’s largest plywood investor, according to Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association.

Customs authority discovers multiple cases of origin fraud
Customs authority discovers multiple cases of origin fraud
BUSINESSicon  07/07/2020 

Country of origin fraud cases, wherein Chinese products bear Made-in-Vietnam labels, are on the rise, with Vietnam’s customs authority recently inspecting 76 cases

Thai firm buys two wind power farms in Vietnam
Thai firm buys two wind power farms in Vietnam
BUSINESSicon  07/07/2020 

The move aims to take advantage of low interest rates to build projects with a quick return on investment.

FIEs displeased with government demand to license internal websites
FIEs displeased with government demand to license internal websites
BUSINESSicon  07/07/2020 

The new regulations of the MIC may affect the policies and assets of private businesses and foreign-invested enterprises in Vietnam.

Amended law alters funding landscape
Amended law alters funding landscape
BUSINESSicon  07/07/2020 

The Vietnamese National Assembly has adopted the new Law on Investment, with new rules in favour of foreign investment, including from the US, which is expected to surge in Vietnam in the time to come.

New investment wave starts despite COVID-19
New investment wave starts despite COVID-19
BUSINESSicon  07/07/2020 

The new wave of foreign investment triggered by COVID-19 and US-China trade tensions is becoming more visible as outstanding overseas ventures are expanded.

Stronger money policies might be considered to aid economic growth: SBV
Stronger money policies might be considered to aid economic growth: SBV
BUSINESSicon  07/07/2020 

The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.

Guiding decrees needed to fight with transfer pricing in Vietnam
Guiding decrees needed to fight with transfer pricing in Vietnam
BUSINESSicon  07/07/2020 

Anti-transfer pricing measures were included in the Law on Tax Administration for the first time, but a guiding decree has not yet been written. Experts said this could mean the rules are less effective.

VN corporate bond market to boom in second half
VN corporate bond market to boom in second half
BUSINESSicon  07/07/2020 

Companies are looking to raise debts from bond issuance before the amended Law on Securities takes effect next January.

E-commerce in Vietnam thrives during COVID-19
E-commerce in Vietnam thrives during COVID-19
BUSINESSicon  08/07/2020 

“Covid-19 has given e-commerce a push,” said Nguyen Thuy Anh from the Department of E-commerce and Digital Economy.

Local banks warn they may become ‘hostage’ of businesses
Local banks warn they may become ‘hostage’ of businesses
BUSINESSicon  08/07/2020 

If large businesses cannot pay their debts, they may put pressure on banks to lower requirements for loans.

Is there a new wave of bank shares landing in VN stock market?
Is there a new wave of bank shares landing in VN stock market?
BUSINESSicon  08/07/2020 

Commercial banks have six months to fulfill procedures to list their shares on the bourse, as requested by the Prime Minister.

Moving from former adversaries to trusting and valued partners
Moving from former adversaries to trusting and valued partners
BUSINESSicon  07/07/2020 

Through candid dialogue, mutual respect, and a strong commitment to succeed by the leadership of both countries, Vietnam and the United States created a comprehensive partnership that identifies areas for both countries to work together.

EVFTA expected to give a lift to real estate sector
EVFTA expected to give a lift to real estate sector
BUSINESSicon  06/07/2020 

Many segments of the real estate market are soon expected to benefit from the EU-Vietnam Free Trade Agreement, which takes effect in August.

Whether Apple to build nest in Vietnam?
Whether Apple to build nest in Vietnam?
BUSINESSicon  07/07/2020 

Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

American groups make progress across Vietnam
American groups make progress across Vietnam
BUSINESSicon  06/07/2020 

Vietnam, as one of the fastest-growing economies in the ASEAN bloc, is becoming more appealing to American investors.

 
 
 
Leave your comment on an article

OR QUICK LOGIN