Bien Viet launches stock indexes aimed at foreigners
Source: 06-OCT-2008 Intellasia | Dow Jones
Oct 6, 2008 - 7:00:00 AM Hanoi-based Bien Viet Securities said Friday it has launched a group of indexes aimed at serving foreign investors who want a conservative exposure to Vietnam's stock market.

The group of indexes includes the CBV International Index of 15 stocks listed on the Ho Chi Minh Stock Exchange and Hanoi Securities Trading Centre, and 10 industry sub indexes, said Bien Viet chief executive Vu Duc Nghia.

"We want to provide foreign investors with true knowledge about the Vietnamese stock market, helping them clearly understand the listed companies," said Nghia.

Stocks in the international index are selected on the basis of minimum US$50 million freefloat capitalisation, average daily trading value of at least US$500, 000, price to earnings ratio well below 25 times, and minimum foreign investment "room" of US$9 million.

The percentage weight of each component is capped at 12%.

"Low liquidity and foreign ownership limit leading to uninvestibility for foreign investors are major issues for many international funds interested in the Vietnam stock market," Bien Viet said in a statement.