A Vietjet aircraft. The aviation firm's shares may be purchased by the US-listed fund VanEck Vectors Vietnam EFT in the upcoming quarterly portfolio review. (Source: ndh.vn)Hanoi (VNS/VNA) — The US-listed asset management fund VanEck VectorsVietnam ETF (VNM ETF) may purchase shares of the new generation carrier Vietjetin its upcoming quarterly portfolio reshape.
The projection is made by Bao Viet Securities Co (BVSC). In this projection,VNM ETF will buy more than 19.2 million Vietjet shares to increase the numberof Vietnamese companies in its portfolio to 19 from the current 18.
Vietjet shares will then account for 4.21 percent of VNM ETF’s totalinvestment. Vietnamese shares are taking 71.83 percent of VNM ETF’s totalcountry’s weightings – much higher than other markets such as the Republic ofKorea (14.65 percent), Japan (5 percent) and Taiwan (4.61 percent).
To be admitted, a company must have at least 10 percent of its total free-floatshares available for foreign ownership, a market value of at least 150 millionUSD and a three-month daily average trading value of minimum 1 million USD.
Vietjet is listed on the Ho Chi Minh Stock Exchange as VJC. The company sharesrose 0.8 percent to trade at 132,000 VND (5.67 USD) per share on August 22.
The airline debuted on March 2, 2017 with more than 541.6 million shares. Itsshares hit the highest level of 184,840 VND per share on April 2, 2018.
The company caps its foreign ownership limit at 30 percent of capital and thereis now a 10.77 percent room for foreign investment.
In the first six months of 2019, Vietjet earned 26.3 trillion VND in combinedrevenue, up 24 percent year on year, and 2.4 trillion VND in pre-tax profit, up11 percent year on year.
According to BVSC, VNM ETF will not sell any Vietnamese stocks from itsportfolio in the next review and the fund will even up Vietnam’s countryweighting from 71.63 percent to 73-74 percent.
To remain in VNM ETF’s portfolio, a company must have at least 5 percent oftotal free-float shares available for foreign ownership and a market value ofat least 75 million USD.
In addition, the trading value of the company shares must at least average 600,000USD in each day of the last three months or minimum 200,000 shares are tradedeach month in the last six months.
VNM ETF is listed on the New York Stock Exchange and has invested in 27companies across Asia, including 18 Vietnamese companies.
The fund’s top 10 investees by market value include seven Vietnamese firms,which are property firms Vingroup (VIC), Vinhomes (VHM), Vincom Retail (VRE)and Novaland (NVL), dairy producer Vinamilk (VNM), Vietcombank (VCB) andinsurer Bao Viet Holdings (BVH).
Other Vietnamese firms that have received funding from VNM ETF include consumerstaple group Masan (MSN), steelmaker Hoa Phat (HPG), PetroVietnam Power Corp(POW), SSI Securities (SSI), FLC Faros Construction Corp (ROS) and Sai GonThuong Tin Commercial Bank (STB). — VNS
VNA
