Foreign fund PYN Elite has closed profits on technology stocks FPT and CMG.

In a letter to investors in the first quarter of 2024, Finnish investment fund PYN Elite said that the stock market in 2025 will be affected by a number of factors that make it impossible to predict quarterly profits.

In the fund's portfolio, IT stocks including FPT and CMG have outperformed corporate earnings by a clear margin by 2024, PYN Elite said.

"We decided to take profits on these stocks because this group of stocks has been gaining in recent years and technology stocks in some other stock markets have also benefited from this. An experienced investor will realize that valuations are high and can realize profits, minimizing risks."

However, after taking profits on the technology stocks in the portfolio, PYN Elite also mentioned the tech bubble event in 2000.

The collapse of the tech bubble in 2000 had a strong impact not only on US tech stocks but also on the Finnish stock market, where Nokia was heavily weighted along with a large group of IT companies that had listed during the tech boom.

The tech bubble eventually burst, and the effects spilled over into other stock markets. But many non-tech stocks recovered faster than tech stocks, which had been overvalued.

After stating that the valuation of the technology group was high, PYN Elite said that banking stocks currently account for more than 50% of the fund's portfolio.

According to PYN Elite, based on projected 2025 earnings, these bank stocks are trading at a very low P/E of 5.8. For the banking sector, there is a very broad consensus in the Vietnamese market that as the VN-Index begins to move towards new levels, earnings will increase sharply and banking stocks will play an important role.

“Our fund has not specialized in banking stocks in its 26-year history, but this is the right time to allocate a significant amount to banks in the portfolio. Vietnamese banks are rapidly expanding their business operations and the real estate market is witnessing changes,” PYN Elite said.

Source: https://baodautu.vn/quy-ngoai-pyn-elite-da-chot-loi-co-phieu-cong-nghe-fpt-cmg-d258803.html