MSCI Frontier Markets Index keeps Vietnamese number of stocks unchanged

15-Feb-2020 Intellasia | BizLIVE | 6:02 AM Print This Post

Morgan Stanley Capital International (MSCI) has released the Q1/2020 periodic list of the MSCI Frontier Markets Index.

Accordingly, at the periodic portfolio structure of Q1/2020, MSCI did not remove or add any new Vietnamese stock from the index basket for the MSCI Frontier Markets Index and kept the number unchanged at 12.

Meanwhile, only one new stock from Nigeria was added this index basket.

Thus, the number of shares in MSCI Frontier Markets Index has increased to 93. This new portfolio will be effective from March 2nd 2020.

As of January 31st 2020, the proportion of Vietnamese stocks in MSCI Frontier Markets Index was 15.24%, the second after Kuwait’s market (37.76%). The top 10 largest stocks in the index portfolio named three Vietnamese stocks, including VIC (4.14%), VHM (3.16%) and VNM (2.85%).

Fairly high number of active funds with scales of hundreds of millions US dollars are using the MSCI Frontier Markets Index as a benchmark, such as Schroder International Selection (one billion US dollars), Templeton Frontier Markets Fund, Morgan Stanley Institutional Fund, Magna Umbrella Fund, etc. Thus, the change in stock composition as well as the proportion of countries will have a significant impact on market developments.

According to the MSCI’s estimates, the proportion of Vietnamese stocks in the MSCI Frontier Markets Index will increase to 25.2 percent and the number of stocks will increase to 16 when Kuwait is upgraded to Emerging Markets in 2020. This means that hundreds of millions of US dollars may be poured into Vietnam.


Category: Stocks, Vietnam

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