Vincom Retail could be added into the investment portfolios of the two major foreign-run exchange traded funds (ETFs) on the Vietnamese securities market: FTSE Vietnam ETF and VNM Vietnam ETF.

 

BIDV Securities Corporation (BSC) said in a report that FTSE Vietnam ETF would buy 13.5 million shares of Vincom Retail, equal to 8.9 per cent of the fund’s investment portfolio.

 

Saigon Securities Incorporation (SSI) forecast the London-based investment fund would buy nine million shares of Vincom Retail to take 6 per cent of the fund’s portfolio.

 

The potential inclusion of Vincom Retail shares, the retail arm of the Vietnamese property and retail conglomerate Vingroup, in the two ETFs’ investment portfolios is a part of their portfolio reviews that will be finalised in early March.

 

The two Vietnamese brokerages made their forecast based on trading data recorded on February 23.

 

Vincom Retail could be bought by the two major ETFs as the company shares had qualified for the requirements of the two funds such as market capitalisation, trading liquidity and free-floating share ratio and the company had been trading on the stock market for more than three months.

 

Vincom Retail started trading more than 1.9 billion shares on the HCM Stock Exchange (HoSE) on November 6, 2017, coded VRE.

 

VRE closed Monday at VNĐ55,000 (US$2.44) per share, having climbed 20.6 per cent since February 9.

 

At Monday’s closing price level, Vincom Retail’s market capitalisation was VNĐ104.5 trillion ($4.64 billion) with an average of nearly 3.68 million shares traded in each of the last 10 sessions.

 

Other changes

 

BSC also forecast VNM Vietnam ETF would buy 5.76 million shares of the largest petrol dealer Petrolimex (HoSE: PLX), equal to 5 per cent of the fund’s portfolio.

 

PLX started trading on HoSE on April 21, 2017 at VNĐ49,390 per share and has gained 79 per cent since then to end Monday at VNĐ88,500 per share, making its market capitalisation at VNĐ114.5 trillion.

 

On the other hand, both BSC and SSI predicted that GTN Foods JSC would be removed from the two funds’ portfolio in March as the company had failed to meet the two funds’ requirements on trading liquidity and market capitalisation.

 

GTN has plunged 26.4 per cent in the last eight consecutive trading sessions to close Monday at VNĐ10,300 per share. GTN Foods began trading its 250 million shares on HoSE in early October 2014 at VNĐ11,450 per share.

 

At Monday’s closing price level, GTN Foods’ market capitalisation reached VNĐ2.57 trillion. — VNS