In its quarterly review of the FTSE Vietnam Index Series, index compiler FTSE Russell confirmed that Phat Dat Real Estate Development will be removed from the the FTSE Vietnam Index before the end of the month.
Phat Dat Real Estate Development Corporation (PDR) is one of the largest development companies in Vietnam and will be removed from the FTSE Vietnam Index due to failing to meet the liquidity criteria require for it to remain in the basket. According to VietnamBiz, average daily trading value for PDR shares in the past three months stood at VND 14.9 billion ($641k), which is below the VND 15.3 billion ($658k) level needed to remain in the FTSE Vietnam Index.
As of 31st March 2020, PDR had a weighting of 1.43% in the FTSE Vietnam Index, which was the 7th smallest position. Its removal and no other additions means that there will only be 17 constituents remaining in the Index.
FTSE also confirmed that there will be no additions to the FTSE Vietnam Index.
In the wider FTSE Vietnam All-Share Index, FTSE confirmed that there will be two exclusions from the Index. Energy company Pha Lai Thermal Power (PPC) was the first to be removed due to its average trading value not meeting the minimum requirements to remain in the Index. The company has lost just over 10% since the beginning of the year.
The second company that will be removed from the FTSE Vietnam All-Share Index is construction company FLC Faros Construction (ROS). The company was removed from the FTSE Vietnam Index in March 2020 and will now exit the FTSE Vietnam All-Share Index. FLC enjoyed a 13-fold increase in its share price in the space of two months after its initial public offering (IPO) on the Ho Chi Minh Stock Exchange in September 2016, but has since traded at below its IPO price in recent months. FLC Faros’ share price has dropped by almost 97% since the start of 2020.
The removal of the two stocks from the FTSE Vietnam All-Share Index takes the total number of constituents down to 40. There were no additions to the Index in the review.
Changes to the Vietnam Index Series will become effective on Monday 22nd June 2020.