In its quarterly review of the FTSE Vietnam Index Series for September 2020, index compiler FTSE Russell confirmed that Vietnam Electrical Equipment will rejoin the FTSE Vietnam Index before the end of the month.
Vietnam Electrical Equipment JSC (GEX) will be reinstated in the Index after it was removed in December 2019 for violating liquidity criteria. Liquidity has improved in recent months and the share price have increased by 34% since the beginning of 2020.
There’s no indication of what GEX’s weighting will be, but before it was removed in December 2019 it made up 1.28% of the Index and its re-inclusion will mean there will now be 18 constituents, the largest (as of 30th June 2020) being Vinhomes (15.50%), Vietnam Dairy Products (15.01%), Vingroup (14.87%) and Hoa Phat Group (10.42%).
There were no exclusions from the FTSE Vietnam Index.
FTSE have also announced changes to the FTSE Vietnam All-Share Index. The below stocks have been included, taking the total number of constituents to 45:
|Kinh Do JSC||B16GKS6||KDC|
|PetroVietnam Fertilizer & Chemical JSC||B291F68||DPM|
|Hai Phat Investment||BDQQ303||HPX|
Of the five companies that were added, three of them – Viglacera, PetroVietnam Fertilizer & Chemicals JSC, and Coreccons Construction – were previously removed from the Index in the December 2019 review.
Similar to the FTSE Vietnam Index, there were no exclusions from the FTSE Vietnam All-Share Index.
Vietnam still remains on FTSE’s Watch List for a potential upgrade in its status from Frontier Market to Secondary Emerging Market. The country has taken positive steps in an effort to convince both FTSE and MSCI to upgrade it to a more prestigious category, especially with its recent announcement that the Asian nation is contemplating the option of allowing investors to undertake short selling of stocks on the market. This would provide a massive boost to their chances.
Previous FTSE Vietnam quarterly changes can be found below: