Asia’s best performing stock market is having its worst month in more than two years, with a $14 billion loss in the value of Vietnam’s equities since April 6’s record high.
Alan Richardson, portfolio manager at Samsung Asset Management, whose fund has outperformed 94 per cent of its peers on a five-year return basis, said the “market has peaked” after the nation’s benchmark index gained 130 per cent from a low in 2016 through a record high on April 6. The fund sold a majority of its Vietnam equity holdings in March.
Emerging market stocks and currencies are suffering the brunt of investors’ jitters as a surge in US Treasury yields overshadowed easing trade and geopolitical tension. The MSCI Emerging Markets Index is poised to drop for a third month, the longest losing streak since a four-month rout that ended in February 2016.
“There appears to be currency pressures in the Asia region. I have yet to see the market price that in for Vietnam,” said Hong Kong-based Mr Richardson. Vietnam’s benchmark index fell 1.7 per cent as of 9:51am in Ho Chi Minh to its lowest level since February 13.
A stocks rally and a privatisation programme by the government has also led to a flurry of companies seeking to tap the capital markets amid rising foreign-direct investment and accelerating economic growth that boosted the nation’s benchmark. The VN Index rallied 48 per cent in 2017 and climbed another 22 per cent this year when it reached its April 6 record.
Techcombank, a Vietnamese lender backed by Warburg Pincus, is seeking to raise about $922 million. This would be Vietnam’s biggest initial equity offering ever, surpassing mall operator Vincom Retail JSC’s sale in October, data compiled by Bloomberg show. Luxury property developer Vinhomes JSC, which started gauging demand for its offering last week, could raise as much as $2 billion, exceeding Techcombank, Bloomberg News reported last week.
These potential offerings could also be the reason behind the selloff as investors divest current holdings to use capital for the upcoming IPOs, said Joshua Crabb, head of Asian equities at Old Mutual Global Investors.
"IPOs are coming in at slightly cheaper valuations to some and with better growth prospects,” said Mr Crabb.
About $536m of foreign inflows so far this year has boosted the market to a record while valuations surged to 20.7 times its 12-month forward earnings in January, the highest ever on record. The gauge currently trades at 17.7 times of earnings compared to 15.3 on the MSCI Southeast Asia Index.
"It has been a lot more volatile recently. The market has done very, very well,” Mr Crabb said.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
The Outsider
Stephen King, Penguin
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
