Monthly Investor Report

RNS Number : 1783M

VietNam Holding Limited

21 August 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of July 2013 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.aspx and a summary of the report is included below.

Investor Report Summary

VNH Insights:

July was a relatively sedate month for Vietnam's equity markets. The benchmark VNI index closed at 491.85 on the last day of July, up 2.2% for the month and 18.9% YTD, but off its recent high of 527.97 recorded on 7 June 2013.

Last month the VNH NAV per share increased by 5.22%. The main contributor to this impressive outperformance of the VNI in July was Hau Giang Pharma (+25.3%), one of VNH's strong conviction mid-cap investments from the domestic consumption theme. After it had reported Q2 figures which were mostly in line with analysts' expectations, the company's stock rallied on rumours of a stock split as well as the ongoing discussions of a possible increase in the foreign ownership limits of Vietnamese equities. Eventually, Hau Giang Pharma paid its shareholders a cash dividend and no bonus shares were issued. The stock price maintained its upward trend nevertheless.

Generally, investors in Vietnam are following the developments around a potential introduction of non-voting depository receipts (NVDRs) with great interest as this would lift the foreign quota and as a result more liquidity could be expected. At the current stage it is hard to foresee if or when this would be approved and implemented by the Ministry of Finance and the State Security Commission, respectively.

During the month of July VNH, through its corporate broker in London, Oriel Securities, bought back 1,020,000 of its own shares to be kept in treasury. This marks the most active month since the beginning of the share repurchase program in September 2010 and it underlines VNH's commitment to narrow the share price discount to NAV. In July the VNH share price increased by 4.6% amid the, as usual, rather sluggish trading volumes during the summer months. Due to the strong NAV performance the discount at month-end was still at 25% which was in line with the peer group's weighted average discount.

VietNam Holding Asset Management Limited
Gyentsen Zatul	Telephone: [phone]
- Investor Relations

 

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