27.11.2020, 00:10

PYN Elite Fund: ‘It’s not too late to get on board and enjoy the positive market outlook’


PYN Elite Fund: ‘It’s not too late to get on board and enjoy the positive market outlook’

In a recent announcement to investors, PYN Elite Fund (PYN Elite Fund) acknowledged that Vietnamese businesses had good growth momentum in 2020 and this was the premise for an impressive market performance. stock. However, the large withdrawal of foreign capital in the first few months of the year due to the influence of Covid-19 has eliminated the market prospect.

However, PYN Elite Fund thinks things are different now.

The fund emphasized that the VN-Index is currently only 2.9% higher than the beginning of the year despite Vietnam’s GDP growth of about 2.5% this year and the income of listed companies is expected to increase by 34%. in 2021.

Although this year, PYN Elite Fund recorded a yield of 12.5%, but the fund noted that this comes from strong growth of some individual stocks, especially CTG. Some other stocks still have lower prices compared to the beginning of the year despite the very good growth potential in 2021, such as VHM – Vietnam’s largest real estate developer or POW – the leading power generation company.

PYN Elite Fund emphasized that the P / E of 2021 of the VN-Index is forecasted to trade at a historic low as well as compared with the valuation of other emerging markets in Asia. At the same time, we believe that the net foreign capital inflow flowing into Vietnam’s stock market will change from negative to positive in December.

“It is not too late to get on board and enjoy the positive outlook of the market”, the PYN Elite Fund sent the message.

Recently, the Vietnam stock market recorded an impressive performance, the VN-Index once exceeded 1,000 points.

Explaining the rise of the stock market, Chairman of the State Securities Commission (SSC) Tran Van Dung said that Vietnam’s good disease control, leading to reduced human and property damage, the economy has been recovered, is an important reason for the strong growth of the stock market recently.

In addition, the stock market management agency has also issued policies to support the market, solving difficulties for businesses …

Along with that, over the past time, the stock market has also received support from many different reasons.

Accordingly, the domestic macroeconomic situation in the first 3 quarters of the year had many bright spots, positive exports, a record high trade surplus, and controlled inflation. Vietnam’s economic prospects in the fourth quarter are evaluated well by international organizations (IMF, World Bank, ADB forecast Vietnam to grow from 1.6% – 3% in 2020).

In addition, the Government is promoting public investment while improving the efficiency of capital use, especially large-scale, key projects that will have a spillover effect on the socio-economic development of localities. and promoting economic growth in general and the development of businesses in particular. Many businesses have growth potential if they take advantage of investment mobility opportunities, while at the same time responding well to challenges in the context of implementing newly approved international trade and investment agreements (EVFTA, AVIPA).

Business results of listed companies in the first 9 months of the year showed many clear signs of recovery, the number of profitable companies decreased slightly compared to the same period in 2019 but still accounted for 86%.

Chairman of the State Securities Commission emphasized that with Kuwait being upgraded to Emerging Markets, Vietnam may be the biggest beneficiary in the MSCI Frontier Markets reclassification in November. This will also be the driving force to attract capital flows. from margin index funds to the Vietnam stock market.

In addition, in recent years, other investment channels such as savings and gold investment have become less attractive because banks have reduced interest rates and the rise in gold prices has slowed, leading to an idle cash flow. is invested in the stock market, contributing to increase the purchasing power on the stock market.

In addition to domestic factors, according to Mr. Tran Van Dung, the economic recovery of major economies in the world such as the US, China and Europe in the third quarter is also one of the driving forces. makes Vietnam’s stock market grow.

The Chairman of the State Securities Commission noted that in the complicated developments of the epidemic, the unpredictable global economic outlook will affect the orientation of economic development policies in general and the stock market in particular.

Source: vietnamfinance.vn – Translated by fintel.vn