The HCM Stock Exchange (HoSE) has announced the latest update to the blue-chip VN30 Index for July 2019, which will take officially effect from August 5.

 

Accordingly, Bank for Investment and Development of Việt Nam (BID) and insurer Bảo Việt Holdings (BVH) are the two stocks selected for the VN30 basket in this phase to replace HCM Infrastructure Investment (CII) and Hậu Giang Pharmaceutical (DHG) stocks.

 

With the addition of BID, the banking group will have nine representatives in the VN30 basket.

 

The other eight banks are Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG), Vietnam Commercial Joint Stock Export Import Bank (EIB), Hồ Chí Minh Development Joint Stock Commercial Bank  (HDB), Military Commercial Joint Stock Bank  (MBB), Sài Gòn Thương Tín Commercial Joint Stock Bank (STB), Vietnam Technological and Commercial Joint Stock Bank (TCB), Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB), and Vietnam Prosperity Joint Stock Commercial Bank (VPB).

 

This banking group accounts for a total proportion of 31.6 per cent, more than double the proportion of Vingroup Joint Stock Company (VIC), Vincom Retail Joint Stock Company (VRE) and Vinhomes JSC (VHM) (15 per cent).

 

Currently, VN30 is a reference index of VFMVN30 ETF fund with a portfolio size of nearly VNĐ6.8 trillion (US$291.85 million).

 

Based on data on July 15, it is estimated that VFMVN30 ETF will buy about VNĐ61.7 billion worth of BID shares and VNĐ64.3 billion worth of BVH shares. Meanwhile, VFMVN30 ETF will sell VNĐ42.1 billion worth of CII shares and VNĐ38.7 billion worth of DHG shares.

 

The change in the VN30 basket not only affects VFMVN30 ETF fund movements but also significantly affects the derivatives market.

 

HoSE also revealed there would be five reserve stocks for the VN30 basket in July 2019, including Tiên Phong Commercial Joint Stock Bank (TPB), Vietnam Electrical Equipment Joint Stock Corporation (GEX), Đất Xanh Group JSC (DXG), Vĩnh Hoàn Corporation (VHC) and Hoàng Huy Investment Financial Services JSC (TCH). — VNS