9th Sep 2022 08:22
(Alliance News) - Vietnam Enterprise Investments Ltd on Friday reported a slightly better performance in the first half of 2022 than its benchmark, but net asset value remained in decline due to both domestic and global headwinds.
For the six months ended June, the closed-end fund focused on investing in Vietnamese equities reported a NAV negative return of 20%, compared to the VN index - a capitalisation-weighted index of all companies listed on the Ho Chi Minh Stock Exchange - which made a negative return of 21%.
On a three-year rolling basis, Vietnam Enterprise outperformed the VN Index by 16%.
As at June 30, NAV per share stood at USD9.76, down 17% from USD11.79 on the same date a year before, and 20% from USD12.21 at the end of December.
On top of global issues including accelerating inflation, the war in Ukraine and rising interest rates, the Vietnam stock market was affected by recent investigations into stock market manipulation and a crackdown on bond markets issuances by real estate firms, the company explained.
Among portfolio holdings, Mobile World Group was one of Vietnam Enterprise's top performers, benefiting from pent-up demand after the pandemic, in addition to banks Vietnam Prosperity Bank and Asia Commercial Bank.
"For the rest of the 2022 calendar year, ongoing global issues still need to be carefully considered as they will continue to challenge Vietnam’s macro-economic goals. Vietnam's government is showing strong determination to achieve its GDP target of 6.5% to 7.0% and more importantly to control inflation within 4.0% to 4.5%. We believe that Vietnam continues to offer one of the strongest structural growth outlooks among developing economies, led by industrialisation and urbanisation and strong domestic consumption," said Chair Gordon Lawson.
Shares in Vietnam Enterprise were marginally lower at 688.90 pence on Friday morning in London.
By Dayo Laniyan; [email protected]
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