FTSE’s reshuffle may give Vietnam stocks a US$3 billion boost
The index provider says 27 Vietnamese stocks will be added to its benchmarks, including the emerging-market gauge
FTSE Russell's semi-annual index review has led to 27 Vietnamese stocks being added to its benchmarks, including the emerging-market gauge. This effective September 21, will give Vietnamese stocks a weight of 0.49 percent, according to Vietcap Securities. This is higher than FTSE's earlier projection of 0.46 percent. The addition of these stocks could provide a US$3 billion boost to the index flows, as opposed to the previously projected US$2 billion.
Anthony Le, a director at Vietcap Securities, expects the market to react positively to this news in the upcoming week. The move comes at a crucial time for Vietnam, as its stock market anticipates its first annual loss in four years due to persistent selling by foreign investors. Despite this, Vingroup, Vinhomes, Hoa Phat Group, and Masan Group are among the 27 stocks that will be added as large-, mid-, and small-caps to the indices.
The phased implementation of these changes through September 2027 suggests that passive inflows will build gradually rather than arrive in a single wave. While this may support Vietnamese stocks in the near term, investors anticipate that the new market status will attract both passive and active fund managers, who could bring larger, more durable inflows than passive trackers.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
