The VN-Index down -5.7% in September. PYN Elite -7.4%, an extra hit from VND weakness. After the Independence holiday, the market reacted positively to the US-Vietnam comprehensive strategic partnership upgrade and the new trading system (KRX) launching soon. However, this sentiment didn’t last long as VND continued to depreciate against the US dollar, -3.2% YTD. The SBV offered bills to ease the pressure on foreign exchange rate and absorb surplus capital in the banking system. Interest rates have declined back to the Covid level at 5.5 %.
The average daily trading volume in September remained at around 972m USD level. Liquidity dropped sharply toward month-end as investors became more cautious about global stock performance, SBV action, and the approaching third-quarter results.
Macro: Vietnam’s GDP rebounded in Q3, reaching 5.3% YoY. The service sector remained the strongest driving force at +6.2% YoY, while the industrial and construction recovered steadily, at +5.2% YoY.
September exports +4.6% YoY and imports +2.6% YoY. This is the first growing month compared to the same period last year. After 9 months, the trade balance came in a 21.7b USD surplus.
Disbursed FDI in 9 months reached a record high, at over 15.9b USD. Singapore, China, Japan and South Korea are currently our biggest FDI investors.
PYN Elite Stock of the Month: ACV
ACV manages nine international and thirteen domestic airports in Vietnam. In the first eight months of 2023, the company estimated its profit before tax at 6.5 trillion VND, achieving 77% of its full-year target. International customers quadrupled YoY, at 21 million passengers. The company is entering the expansion phase with multiple upgrade projects and a new international airport near HCMC. ACV maximized the existing infrastructure of the two biggest airports in Vietnam, keeping them running well above their designed capacity for years.
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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 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.