The Hochiminh Stock Exchange (STC) on Monday announced 30 stocks to be put in an official “basket” to calculate the VN30 Index that will be applicable on February 6.
VN30 Index includes 30 stocks listed on STC with largest market capitalisation and highest liquidity. This group of stocks account for about 80 percent of total capitalisation and 60 percent of the total transaction value of the market.
STC also announced the free float rate and the number of outstanding volumes for calculating the index as well as the list of 10 back-up stocks on Monday.
The free float rate aims to eliminate the risk of distortion of the index. It is calculated by the number of shares freely traded on the total number of outstanding shares, instead of listed shares as presently.
VN30 Index is expected to overcome the disadvantages of the VN Index, which does not reflect the current density of components of freely traded shares as well as promoting trade, especially with foreign investors.
BVH, MSN, VIC, VNM and HAG now lead the market for capitalisation, making up 45 percent of the VN Index’s calculation, but their freely traded shares account for just 28 percent of total listed shares.