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Vietnam Enterprise Investments Ltd on Thursday said that it underperformed against its benchmark during November, despite reporting a rise in net asset value as the market in in Vietnam appeared to recover.
The closed-end fund focused on investing in Vietnamese equities said NAV per share at November 30 rose 1.9% to $7.65 from $7.51 at October 31. Its benchmark, the Vietnam Index, rose by 2.9%.
Portfolio Manager Dien Vu said: ‘Though it is early days, the second half of November and first half of December suggest that Vietnam’s equity market might have finally found its footing. Despite mixed overall performance, four of the company’s top ten holdings witnessed double-digit share price growth. Two of the company’s top ten holdings that had been out of favour, Vietnam’s biggest property developer, Vinhomes, and the country’s largest steel producer, Hoa Phat Group, experienced rebounds in their share prices. We believe this likely reflects value-driven investors taking advantage of their price-to-book ratios being at their lowest levels since 2018 and 2012, respectively.’
However, he cautioned on Mobile World Group: ‘Sentiment in Mobile World deteriorated quickly following its latest analyst meeting during which the company revised its guidance to a 10% drop in earnings this year due to weak demand in consumer electronics. MWG is still expected to return to double-digit earnings growth next year, whilst the company continues exploring its different options regarding the potential pre-IPO placement of its grocery business.’
Vietnam Enterprise shares fell 0.4% to 576.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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