HCM City (VNA) — The Ho Chi MinhStock Exchange (HOSE) has introduced three new stock indices developed based onthe investment requirements of local funds.
They are the Vietnam Leading Financial Index orVNFIN Lead, Vietnam Financial Select Sector Index or VNFIN Select and VietnamDiamond Index or VN Diamond.
The first two are based on HOSE's VNAllshareFinancials Index and the condition that each stock’s market capitalisationratio will not exceed 15 percent of the index.
VNFIN Lead includes at least 10 constituentsecurities. Any company added to it must have at least 10 billion VND (431,716USD) worth of daily trading and a minimum turnover ratio of 0.1 percent.
The VNFIN Select Index, with at least 17constituent securities, requires constituent stocks to have a minimum marketcap of 500 billion VND (21.59 million USD) and minimum trading value persession of 1 billion VND.
To be included in the VN Diamond Index, stocksmust meet certain conditions in terms of market cap, transaction value andforeign ownership.
They should also have foreign ownership of atleast 95 percent of the permitted limit and the remaining stake that foreigninvestors can buy should not be worth more than 500 billion VND.
The market cap of individual stocks is 15 percentof the index and an industry must not exceed 40 percent.
According to HOSE, the creation of indices basedon the needs of investment funds is an inevitable step taken by stock exchangesaround the world to meet the market’s diverse needs. /.
