HNX-Index to be phased out in exchange revamp
The new
index will be put into operation in December. After another year, the
HNX-Index will no longer exist. The HNXFF-Index's debut value will be
the HNX-Index's December 2 value.
The establishment
of the HNXFF-Index marks the first time a benchmark index is formed by
the free-float methodology, which means taking the equity's price and
multiplying it by the number of shares readily available in the market.
Instead of using all of the outstanding shares like
the full-market capitalisation method, this method excludes locked-in
shares such as those held by promoters, company officers,
controlling-interest investors and the Government. Therefore, stocks
eligible for the HNXFF-Index must have a minimum free-float rate of 5
percent.
In addition, the exchange will also launch a
set of indices based on the scale of shares, including the HNX Large
Cap Index and HNX Mid/Small Cap Index.
Specifically, the HNX Large Cap Index will be comprised of 50 stocks
with the highest average market capitalisation value within six months
prior to the calculation and charter capital of at least 120 billion VND
(5.6 million USD) by the time of the calculation.
The HNX Mid/Small Cap Index will consist of stocks listed for at least
six months with a free-float rate of at least 5 percent, which are not
suspended for three months before the time of calculation.
The revision of these indices will be conducted periodically in April and October.
Another set of indices is the industry index, including the HNX
Manufacturing Index, HNX Construction Index and HNX Financials Index. In
order to limit the impact of large stocks on each index, the exchanges
apply the maximum capitalisation proportion of 20 percent for each
stock.-VNA