VN Index -11.6% in September, dragged by blue chips. VN-30 Index, representing the 30 largest market value stocks -11.5%. The average daily trading value on HOSE fell to about $566m (-14.2% compared to August). PYN Elite NAV -13.2%. Overall, September had been tough for global stock markets: S&P 500 lost -9.3%, Dow Jones dropped -8.8% and MSCI Asia ex Japan (EUR) -10.6%.
Following U.S. Federal Reserve’s hawkish stance, the State Bank of Vietnam followed the general trend and Vietnam’s refinancing rate was hiked moderately from 4 to 5%. The SBV also devalued Vietnamese dong 1.2 % against USD to 23,400 VND/USD.
Macro: Vietnam’s GDP in Q3 rose +13.7% YOY, in which, industry and construction increased by 13% and services increased by 18.9%. Top growth segments in the service sector: food and accommodation +172%, wholesale and retail sector +21%, transportation and warehouse +28.8%.
The trade balance of goods in 9 months of 2022 witnessed a trade surplus of 6.5 billion USD. America continued to be our biggest export partner, followed by China and EU.
CPI in 9 months increased only 2.7% YOY, mainly due to recent fall in fuel price.
PYN Elite Stock of the Month: VEA
VEA started out as a state-owned company manufacturing agricultural machines then actively participated in automobile supporting industry. VEA currently has 13 subsidiaries and 8 affiliated companies. VEA holds 30% of Honda, 25% Ford and 20% Toyota Vietnam in joint ventures, which bring in trillions of dividends every year and benefit from the rapid auto sales growth as well as Honda’s leading position in motorbike market. This year the company plans to pay out approximately 4,500 VND per share to shareholders – about 10% yield.
Important information regarding the text and the Fund
The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Investor Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.
PYN Elite Monthly Review.pdf