Morgan Stanley Capital International (MSCI), a leading global provider of research-based indexes and analytics, has added three Vietnamese stocks to MSCI Frontier Markets Index.

 

They are FPT Securities Joint Stock Company (FTS), Nam Kim Group (NKG) and Sông Đà Urban & Industrial Zone Investment and Development (SJS). 

 

MSCI has recently announced the list for its February review, which includes the most important index set for the MSCI Frontier Markets Index.

 

Besides the addition of three Vietnamese stocks, the MSCI Frontier Markets Index has also added three Pakistani stocks, one Slovenian stock, one Moroccan stock and one Romanian stock. Conversely, the index removes nine Nigerian stocks and two Omani stocks. After this restructuring, the number of stocks in the MSCI Frontier Markets Index will decrease to 209.

 

Việt Nam currently holds the largest market share in the MSCI Frontier Markets Index. As of January 31, 2024, Việt Nam's market share in the MSCI Frontier Markets Index was 27.12 per cent, followed by Romania (11.5 per cent), Morocco (10 per cent) and others. Many large funds, hundreds of millions of US dollars in size, allocate investments to frontier markets (including Việt Nam) based on the MSCI Frontier Markets Index.

 

The top 10 largest stocks in the MSCI Frontier Markets Index as of January 31 include two Vietnamese stocks, Hoà Phát Group (HPG) (with a weight of 2.84 per cent) and Vinhomes (VHM) (2.27 per cent).

 

On the other hand, for the less prominent index set, the MSCI Frontier Markets Smallcaps Indexes, five Vietnamese stocks have been added, including PetroVietnam Gas JSC (GAS), Hoà An JSC (DHA), Nafoods Group Joint Stock Company (NAF), Vạn Phát Hưng Corporation (VPH), and Việt Nam Tanker Joint Stock Company (VTO). Conversely, the index removes Nam Kim Group (NKG), Sông Đà Urban & Industrial Zone Investment and Development (SJS) and Việt Nam Power Development Joint Stock Company (VPD), in which NKG and SJS were removed to be added to the MSCI Frontier Markets Index.

 

Việt Nam currently holds the largest market share in the MSCI Frontier Markets Smallcaps Indexes, with a weight of 31.47 per cent. However, there are no notable funds currently investing in frontier markets based on this index set.

 

The changes to the above index sets will take effect from February 29, 2024. The next restructuring will occur on May 14, 2024. VNS