Recently, the billion-dollar fund Dragon Capital continuously sold real estate stocks and gathered strongly the banking group…
Illustration. Dragon Capital has always had a special interest in banking and real estate, which are the two industries with the largest market capitalization in Vietnam’s stock market. However, following recent developments shows that this group of funds is having a significant change, strongly selling real estate stocks and aggressively collecting banks. STRONG BANK Specifically, as of May 18, Vietnam Enterprise Investment Limited (VEIL), the largest investment fund in Vietnam with a scale of 2.14 billion USD, managed by Dragon Capital, allocated 31.4% of the portfolio to the banking group. increased sharply compared to the figure of 28.83% in early January 2021 and 29.8% compared to April. On May 18, VEIL’s NAV/Share value reached 10.57 USD, up 27.35% compared to the beginning of the year, this is an outstanding growth compared to the increase of the VN-Index which increased by 15.41. %, in USD. Top 10 largest investments of VEIL hold 4 banking stocks, including: VPBank accounting for 11.76%; ACB 9.22%; VCB 6.29%; TCB 3.65%. Most recently, on May 11, VIEL bought 1.5 million shares of VpBank. Besides VEIL, other funds of Dragon Capital such as DC Developing Markets Strategies Public Limited Company purchased 600,000 shares of VPB; CTBC Vietnam Equity Fund and Norges Bank bought 500,000 shares; Samsung Vietnam Securities Master Investment Trust (SSMIT) bought 50,000 shares. Thus, through member funds, Dragon Capital bought a total of 3.15 million VPB shares, estimated to spend 200 billion dong, thereby, raising the bank’s ownership rate from 4.99% to 5.12%, becoming the only major shareholder of VPBank. 
Previously, in mid-April, Norges Bank and SSMIT also bought a total of 9 million ACB shares out of a total of 10 million registered shares. The remaining one million shares could not be bought because ACB ran out of foreign room. Prior to the purchase, neither Norges Bank nor SSMIT owned any shares in ACB. After the transaction, the ownership ratio of these two funds at the bank increased to 0.396% and 0.017% respectively. If calculated according to the market price of ACB shares during the transaction period, two member funds of Dragon Capital may have spent about 300 billion VND to buy 9 million ACB shares. RUN FROM REAL ESTATE GROUP In the opposite direction, Dragon Capital fund group continuously sold real estate and construction stocks. Specifically, Dragon Capital group continued to divest from Ho Chi Minh City Technical Infrastructure Investment Joint Stock Company. During the period from April 20 to May 13, member funds including Amersham In Industries Limited, SSMIT, Norges Bank continuously sold out with a total of more than 6.3 million shares. After the transaction, Dragon Capital group reduced its total ownership in CII to 7.64%, equivalent to more than 18.2 million CII shares. Not only CII, Dragon Capital also recently continuously sold KBC shares of Kinh Bac Urban Development Corporation in the context that this share price plummeted to 32,000 VND/share compared to the historic peak price in January. is 45,000 VND/share. On May 6, this group of funds sold 2.56 million KBC shares and on May 12 continued to sell 1 million KBC shares, reducing their ownership ratio from 7.5% to 6.7%, equivalent to with 31.9 million shares remaining. In April, this fund group also worked hard to sell KBC shares. Dragon Capital’s continuous selling was also in KDH shares of Khang Dien House Trading and Investment Joint Stock Company. On April 19, Dragon Capital announced a net sale of 1.86 million KDH shares, of which Grinling International Limited’s member fund sold 2 million shares and Norges Bank bought 142,900 KDH shares. After the transaction, the total ownership of Dragon Capital group in KDH decreased from 10.21% or 57.07 million shares to 55.21 million shares, or 9.8%. At Dat Xanh Group Joint Stock Company, a group of large shareholders Dragon Capital also sold 3.78 million shares of DXG in mid-March, reducing its ownership ratio from 17.3% to 16.6% in Dat Xanh. 
Dragon Capital’s largest fund allocates its portfolio to many large-cap real estate stocks. Along with selling down the proportion of midcap stocks in the real estate industry, Dragon Capital allocated more portfolio to this industry blue chip with typical codes like VIC of Vingroup, VHM of Vinhomes, and NVL of Novaland with respective proportion 8.78%, 5.68% and 3.7% in VEIL’s portfolio. In the investment proportion of VEIL, the real estate group also decreased from 27.24% to 27.03%. Dragon Capital has always had a special interest in banking and real estate, which are the two industries with the largest market capitalization in Vietnam’s stock market. In 2021, these two industry groups also stand out with the story of capital increase, which is expected to raise the share price of these two industries from now until the end of 2021. However, many securities companies believe that residential real estate can increase the proportion, but the banking group should be careful because the outlook has partly reflected in the price. Bank stocks during the past time have grown continuously, cash flow will most likely find other groups with better growth stories such as steel, agriculture, real estate…
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