The VN30, a new index representing top 30 shares in terms of both market capitalisation and liquidity, will be launched on the HCM Stock Exchange (HOSE) on Feb. 6.
These large-cap shares must account for 80 percent of the total market capitalisation and 60 percent of the total trading volume.
According to the HOSE, the new index aims to overcome the VN index’s existing shortcomings, help investors get more insight into the market as well as serve as an indicator to compare with other indices of regional stock exchanges.
Currently, the VN-Index is the only indicator used by the exchange and represents Vietnam's stock market, but it has gradually revealed many limitations. The index is heavily affected by shares with large listed numbers even though their trading volumes were insignificant each session.
The HOSE plans to review criteria for selecting shares for the VN30 index every January and July./.
These large-cap shares must account for 80 percent of the total market capitalisation and 60 percent of the total trading volume.
According to the HOSE, the new index aims to overcome the VN index’s existing shortcomings, help investors get more insight into the market as well as serve as an indicator to compare with other indices of regional stock exchanges.
Currently, the VN-Index is the only indicator used by the exchange and represents Vietnam's stock market, but it has gradually revealed many limitations. The index is heavily affected by shares with large listed numbers even though their trading volumes were insignificant each session.
The HOSE plans to review criteria for selecting shares for the VN30 index every January and July./.
