ETFs to make no changes in investment lists: SSI Research

Friday, May 22, 2020 07:01

A cow is fed at a Vinamilk cattle farm. Foreign exchange-traded funds (ETFs) are expected to cut their investment in the shares of the local dairy producer at the upcoming quarterly portfolio review. — Photo

There may be no changes in the lists of investees by exchange-traded fund (ETF) indices in the upcoming quarterly review, SSI Research has forecast.

The calculation of investees’ proportion in the FTSE Vietnam Index and MVIS Vietnam Index must be finished by May 29 so review announcements are made on June 5 and June 12, respectively.

The quarterly review will be complete on June 19.

SSI Research – the research division of brokerage firm SSI Securities – predicted there will be no changes in the two indices’ lists of investees.

As of May 15, the total value of investment made by FTSE Vietnam Swap UCITS ETF declined to 199 million euro (US$218.3 million) from February.

The list of investees by FTSE Vietnam ETF contains 18 stocks traded on the Ho Chi Minh Stock Exchange (HoSE).

The fund is expected to increase investment in three stocks – Vingroup (VIC), Vinhomes (VHM) and Vietcombank (VCB).

Vingroup and Vinhomes shares will account for 15 per cent of the total portfolio, up 0.5-1.11 percentage points while Vietcombank shares will take an 8.65 per cent stake in the list, up 2.22 percentage points.

The fund is forecast to cut its investment in the remaining 15 stocks such as dairy producer Vinamilk (VNM; down 1.69 percentage points), Vincom Retail (VRE; down 0.28 percentage points), and steel maker Hoa Phat (HPG; down 0.32 percentage points).

FTSE Vietnam ETF is managed by the London-based asset firm FTSE Russell, focusing on Vietnamese equities.

The MVIS Vietnam Index, developed by the US investment management firm VanEck, is expected to raise investment in Vingroup, Vinhomes, Vietcombank and steel producer Hoa Phat.

On the other hand, shares of Vinamilk, Masan, PetroVietnam Power (POW), sugar firm Thanh Thanh Cong-Bien Hoa (SBT), and insurer Bao Viet Holdings (BVH) are among divestment targets.

Shares of Vinamilk, Vietcombank, Vingroup, Thanh Thanh Cong-Bien Hoa, Vinhomes gained between 0.3 per cent and 1.4 per cent on Thursday while Masan and Vincom Retail shares dropped 0.6 per cent and 0.8 per cent. — VNS

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