The Ho Chi Minh Stock Exchange (HoSE) may include stocks of four listed companies in its coming large-cap VN30 Index review.
The southern bourse on Monday will announce the results of the rebalancing of the large-cap VN30 Index. The decision will take effect on February 4.
The VN30 Index tracks the performance of the 30 largest stocks by market capitalisation and liquidity on HoSE. The basket’s balancing review is done every six months.
If a company wants to be added into the VN30 basket, it must meet some requirements such as being listed on HoSE for at least six months, being excluded from the bourse’s containment list and having 10 per cent of its total shares as free-float shares.
According to VNDirect Securities Corp (VNDS), HoSE may add the Vietnam Technological and Commercial Joint Stock Bank (Techcombank), the HCM City Development Joint Stock Commercial Bank (HDBank), insurer Bao Viet Holdings (BVH) and residential realty firm Vinhomes into the blue chip basket.
“Following this (the result), the VFMVN30 exchange-traded fund, which tracks the VN30 Index and has a total net asset value of VND4.16 trillion (US$179 million), would need to be rebalanced to match the newly structured VN30 Index,” VNDirect Securities said in its forecast.
The Ha Noi-based brokerage firm envisions two scenarios for the upcoming shake-up of the VN30 Index, both of which “imply strong buying” of the four companies as additional names for the blue-chip group.
The proportion of newly added stocks in the VN30 Index forecast by the two scenarios could be 0.8 per cent for Bao Viet Holdings, 3.6-3.7 per cent for HDBank, 9.4 per cent for Techcombank, and 5.3 per cent for Vinhomes, the company added.
“ETF VFMVN30 would require some trades to rebalance the weight of stocks to match the post-review VN30-Index.”
Based on the stock prices at market close on January 15, the VFMVN30 ETF may purchase 0.4 million shares of Bao Viet Holdings, 5.2 million shares of HDBank, 14.8 million shares of Techcombank, and 2.7 million shares of Vinhomes, VNDS said.
Vice versa, the ETF may offload shares of Binh Minh Plastics, HCM City Infrastructure Investment JSC, PetroVietnam Fertiliser and Chemicals Corp, and consumer staple Kido Group.
Those companies “may witness sales of 0.3 million shares, 1.4 million shares, 1.2 million shares and one million shares, respectively,” VNDS said.
The four companies are listing on HoSE with codes TCB, HDB, BVH and VHM. While Techcombank, HDBank and Vinhomes shares gained between 0.4 per cent and 0.9 per cent on Friday, Bao Viet Holdings shares finished the session flat.
Other brokerages had forecasts that slightly differed from VNDirect Securities.
Bao Viet Securities Company (BVSC) said HoSE would add Vinhomes, Techcombank and HDBank into the VN30 Index with respective proportions of 9.13 per cent, 8.65 per cent and 2.84 per cent.
According to BIDV Securities Corp (BSC), Vinhomes, HDBank, Eximbank and TPBank would be added into the VN30 Index with proportions of 4.2 per cent, 3.8 per cent, 2.5 per cent and 2 per cent, respectively. — VNS