Vietnam Holding Limited : VNH Investor Report - January 2014

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RNS Number : 2727A VietNam Holding Limited

17 February 2014

VietNam Holding Limited (the "Company") Investor Report
A report detailing the activities of the Company for the month of January 2014 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/latest-publications.aspxand a summary of the report is included below.

Investor Report Summary

Vietnam News
Vietnam's equity markets were not slow to greet 2014, with the VNI rising over 10.3% to end January at 556.5. This was largely a volume-driven rally, with investors heartened by a number of real and potential developments that has breathed yet more life into the equity markets.
Those developments include an increasing likelihood that some listed firms will be able to have up to 60% of their shares held by foreign investors, pending various approvals, along with a more modest increase in the proportion of shares that a single foreign strategic investor may hold in a local bank (from 15% to 20%). The maximum total foreign ownership in a non-bank financial institution has been set to increase from 30% to 49%.
The macro-economic situation also seems to be gradually picking up, with the government aiming for 5.8% GDP growth in 2014; up from 5.4% in 2013 and 5.0% in 2012. Despite the avid retail shopping that tends to precede the Tet lunar new year festivities, inflation in January was just 0.69% MoM, taking the YoY figure to 5.45%. At the end of January, one US dollar bought 21,039 VND, largely unchanged from the previous month. In the middle of the month, Fitch adjusted its outlook for Vietnam from stable to positive.
VNH Insights
VNH's net asset value per share increased by 8.7% in January, which in turn was topped by the VNI's impressive start into the new year. The main reason for VNH's negative variance to the market benchmark was that the majority of the incremental liquidity came from foreign investors, which showed a strong preference for the large caps, while VNH's portfolio is mid-cap centric. Led by the two Vietnam ETFs net foreign investment bought a total of USD80mn on the HOSE and USD6.5mn on the Hanoi Stock Exchange.
Symptomatically, PetroVietnam Drilling (PVD) was one of VNH's few large caps which performed particularly well in January (+18%) and consequently ended the month as the second largest investment in the portfolio.
Besides the fact that the Vietnamese Stock Market continued last year's 22% rally in the new year and the anticipated increase in foreign ownership, Vietnam's improved macro indicators further spurred the interest of internal investors.
VietNam Holding Asset Management Limited
Gyentsen Zatul Telephone: +41 43 500 28 10

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- Investor Relations
Oriel Securities Limited (Nominated Adviser and Broker)
Stewart Wallace / Neil Winward Telephone: +44 20 7710 7600

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