Foreign fund continuously divests from Mobile World

Monday, Nov 30, 2020 08:16

A customer consults a saleswoman at a store of Mobile World Group (MWG) in Ha Noi. MWG was previously Pyn Elite’s largest investment for many years, but the foreign fund has continuously sold a large amount of MWG shares since the end of 2019. — Photo thegioididong.vn

Pyn Elite Fund has divested capital from Mobile World Investment Joint Stock Company (MWG), said Viet Nam Securities Depository (VSD).

Pyn Elite Fund, a Finnish fund which focuses on Vietnamese shares, has transferred more than 6.45 million MWG shares to JP Morgan Securities PLC.

With MWG now being traded at a market price of over VND110,000 (US$4.77) per share, the above transfer deal is worth more than VND700 billion.

MWG was previously Pyn Elite’s largest investment for many years, but the foreign fund has continuously sold a large amount of MWG shares since the end of 2019. Particularly at the end of 2019, the fund sold nearly half of the MWG shares they were holding, earning trillions of Vietnamese dong.

According to the September portfolio report, the investment proportion at MWG still accounted for 5.56 per cent of Pyn Elite’s net asset value, equivalent to 24.8 million euros ($29.7 million). However, by October, this investment was no longer in the fund’s 10 largest portfolios.

To replace the investment at MWG, this foreign fund has continuously increased the proportion of investments in banking stocks such as VietinBank (CTG) and MBBank (MBB).

The current largest investment of Pyn Elite in Viet Nam’s market is into the Viet Nam Engine and Agricultural Machinery Corporation (VEAM), accounting for 10.4 per cent of the fund’s total net asset value.

Followed by three investments in three domestic commercial banks including VietinBank (9.6 per cent); HDBank (9.3 per cent) and TPBank (8.7 per cent).

In the fund’s 10 largest portfolios, there are currently five investments in the financial and banking sector. In addition to the three above banks, the fund also invests in Military Bank (MBB) (4.7 per cent) and Viet Capital Securities Company (VCI) (3.5 per cent).

MWG reported net revenue in the third quarter of over VND25.7 trillion, up 3 per cent over the same period last year. The after-tax profit earned in the quarter was VND951 billion, also up by 11 per cent.

In the first nine months of the year, the company recorded over VND81.3 trillion in revenue, up 6 per cent and after-tax profit reached nearly VND3 trillion.

Compared to the plan for the whole of 2020, the group has completed 74 per cent of the revenue target and 86 per cent of the profit target.

MWG is among the fastest growing stock group in the past three months with an increase of nearly 60 per cent. Each MWG share is currently being traded at around VND115,500. — VNS

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