VN-Index +2.5% driven by a broad sector recovery. Notably, the small-cap companies outperformed the large-caps, with VN Small-cap Index +9.7%, VN Mid-cap +4.3% while VN30 Index only inched up +1.4%. PYN Elite +1.8% driven by VHM and STB. Following the SBV’s 50 bps rate cut in late May, the average trading value reached a five-month high of $620 million in May and surged to $800 million by the end of the month. Brokers commented that their margin lending books increased by 30-40% YTD, and their retail clients start redirecting funds from bank deposits to the stock market.
Macro: Retail sales growth was still resilient at +11.5% YoY in May, driven by stable goods and the accelerating recovery of the tourism sector, offsetting the slowdown of big-ticket purchases. Exports showed improvement from April (4.3% MoM), resulting in a milder decline of -5.9% YoY. Industrial production +0.1% YoY. Public investment +18% YoY, and the growth is expected to accelerate in 2H2023. Deposit rates and mortgage rates declined on average by 150bps YTD. Market participants anticipate further rate cuts by the SBV in 2H 2023, ranging from 25bps to 100bps, given growth headwinds and subdued pressure from inflation and forex.
PYN Elite Stock of the Month:
MIG is a rising star among non-life insurance companies in Vietnam. The company delivered an impressive growth rate of 27.6% CAGR in gross written premium during 2019-2022, triple the industry growth of 9%. MIG expanded its market share by 2.9%, elevating its ranking to 5th place from 7th. MIG’s management is creative and forward-thinking, they are at the forefront of developing digital insurance, which grew sales by 100% YoY last year and accounted for 30% of total sales. As a subsidiary of MBB, MIG could leverage MBB’s customer base and branch network. MIG set an ambitious target this year: Net Profit of +75% and improving market share to the top 4.
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 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