Tuesday, February 25, 2020 10:23:17 AM - Markets open
VN-INDEX 897.63 -5.71/-0.63%
HNX-INDEX 103.81 -0.36/-0.35%
UPCOM-INDEX 55.11 -0.12/-0.22%
HNX-30 Index continues to underperform
Vietnam News - 12/3/2018 11:15:50 AM
 (0 ratings. You must sign in to rate.)
HÀ NỘI — Investors are struggling to work out where to invest in the HNX30, which  tracks the performance of the 30 largest stocks on the Hà Nội Stock Exchange by market capitalisation and trading liquidity.
Launched in 2012, the HNX30 was expected to become a reference index, but after more than six years, it has not been able to escape the “shadow” of the benchmark VN30 Index.
The VN30 Index tracks the performance of the 30 largest stocks on the Ho Chi Minh Stock Exchange.
Among the 30 stocks in the HNX30 basket, few of them have attracted investors. Prices of some stocks are even hovering around just VNĐ1,000 per share.  The capitalisation of these stocks is usually modest. The total market capitalisation of the stocks in the HNX30 basket as of November 21 was only VNĐ116.6 trillion, while the figure for the VN30 basket reached more than VNĐ1.89 quadrillion.
When mentioning the HNX30, investors usually think of major stocks such as Asia Commercial Joint Stock Bank (ACB), Viscostone Joint Stock Company (VCS), PetroVietnam Technical Services Corporation (PVS) and Saigon-Hanoi Commercial Joint Stock Bank (SHB). In terms of market capitalisation, ACB ranks only 27th in the market and even lower than some shares trading on the Unlisted Public Company Market (UPCoM).
Investors usually focus on liquidity, but in November, the total trading volume on the HNX30 only reached 470 million shares, equivalent to VNĐ8.1 trillion, while the figures for the VN30 basket were 1.15 billion shares, worth VNĐ41.9 trillion.
Compared to HNX30, the VN30 has much larger and more effective businesses.
In the third quarter of this year, total revenue from businesses in the VN30 basket reached nearly VNĐ238 trillion, up 16 per cent year-on-year. After-tax profit reached VNĐ27.2 trillion, up 15.5 per cent year-on-year.
Meanwhile, the total revenue of those in the HNX30 reached only VNĐ28 trillion, up 6.6 per cent over the same period last year. After-tax profit reached VNĐ3.6 trillion, equivalent to only 13 per cent of the total profit of firms in the VN30.
In Q3, 10 enterprises in the VN30 had post-tax profit of  over VNĐ1 trillion, but only one in the HNX30 group did.
Total assets of the 30 businesses in the VN30 as of September 30 reached VNĐ4.2 quadrillion, 5.4 times higher than the VNĐ772.5 trillion on the HNX30.
It is clear the Hà Nội Stock Exchange needs certain adjustments to improve the quality of stocks trading on the bourse in general and those on the HNX30 basket in particular.
Nguyễn Đức Huấn, director of the HNX Trading System Department, said the HNX had been working on improving the quality of stocks trading on the bourse to attract investors. It was guiding firms to follow market regulations, standards on listing, training and information disclosure so that investors had sufficient information to make decisions before investing.
Every year, the HNX assessed the quality of firms’ information disclosure and corporate governance to encourage enterprises to improve transparency, Huấn said.
The HNX was studying new orders and new trading methods. It would collect the opinions of market players and consider the appropriate time for implementation of these methods, Huấn said. — VNS
Read original article here
Newer News
20/02 Investment funds make more stock purchase despite decling prices
20/02 VN-Index steadies amid scepticism
18/02 VN stocks slide on market caution, gloomy forecasts
17/02 Trading remains quiet amid risk concerns
13/02 Shares move up but growth narrowed at the end of trading
11/02 Rising virus death toll weighs on market
10/02 VN stocks struggle to find growth momentum amid disease, expected lower earnings
06/02 VN shares mixed, but growth expected to return
05/02 VN stocks bounce but risks still exist
03/02 VN stocks to keep falling on disease fears
Older News
26/11 Markets drop after recovery
19/11 Market short-term outlook remains negative
15/11 New securities law sparks concerns from expert
08/11 New securities law is a better fit
22/10 Corporate earnings could boost market morale
13/10 Viet Nam shares recover after sharp global falls
09/10 VN-Index breaks 1,000 point level again
04/10 Reference exchange rate continues to rise
04/10 Hanoi Stock Exchange hosts 27 auctions in nine months
03/10 VN Index rebounds with high liquidity
Newsletter Signup
Top Stories
VN shares mixed, but growth expected to return
VN stocks to keep falling on disease fears
Industry 4.0 brings big changes for stock market
Reference exchange rate up 1 VND on January 17
Reference exchange rate up 1 VND on January 15
Market Update
Last updated at 10:25:00 AM
VN-INDEX 897.63 -5.71/-0.63%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.