Vietnam to launch combined stock index this month
The VNX Allshare index will be officially launched on October 24 with a base value of 1,000.
Vietnam will launch a major new stock index on October 24 that will include shares listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), the government has announced.
The existence of two stock markets has held back investors, especially foreigners, whose investment has accounted for around 15% of total trading value on the HOSE so far this year, up slightly from 2015.
The move aims to consolidate the two into one index called the VNX Allshare index that reflects the price movements of all stocks on the market, said HOSE Chairman Tran Dac Sinh.
Together with the launch of the derivatives market in 2017, this joint index is expected to attract more foreign investment and take Vietnam one step closer to international practices.
Currently, there are 208 companies listed on the HOSE and 180 on the HNX. In order to list companies must meet certain standards including liquidity and free-float rate.
Vietnam's current benchmark VN Index was Southeast Asia's best performer in 2015, and has gained over 18% so far this year, the second strongest in Asia, according to data from Reuters.
