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Morgan Stanley Capital International includes 3 Vietnamese stocks in Frontier Markets Index

Morgan Stanley Capital International (MSCI), a leading global provider of research-based indexes and analytics, has added three Vietnamese stocks to MSCI Frontier Markets Index.
Morgan Stanley Capital International includes 3 Vietnamese stocks in Frontier Markets Index ảnh 1An investor watches stock indices on an e-board. Vietnam currently holds the largest market share in the MSCI Frontier Markets Index. (Photo: VNA)
Hanoi (VNS/VNA) - Morgan Stanley Capital International (MSCI), aleading global provider of research-based indexes and analytics, has addedthree Vietnamese stocks to MSCI Frontier Markets Index.

They are FPT Securities Joint Stock Company (FTS), Nam Kim Group (NKG) and SongDa Urban & Industrial Zone Investment and Development (SJS).

MSCI has recently announced the list for its February review, which includesthe most important index set for the MSCI Frontier Markets Index.

Besides the addition of three Vietnamese stocks, the MSCI Frontier MarketsIndex has also added three Pakistani stocks, one Slovenian stock, one Moroccanstock and one Romanian stock. Conversely, the index removes nine Nigerianstocks and two Omani stocks. After this restructuring, the number of stocks inthe MSCI Frontier Markets Index will decrease to 209.

Vietnam currently holds the largest market share in the MSCI Frontier MarketsIndex. As of January 31, 2024, Vietnam's market share in the MSCI FrontierMarkets Index was 27.12%, followed by Romania (11.5%), Morocco (10%) andothers. Many large funds, hundreds of millions of US dollars in size, allocateinvestments to frontier markets (including Vietnam) based on the MSCI FrontierMarkets Index.

The top 10 largest stocks in the MSCI Frontier Markets Index as of January 31include two Vietnamese stocks, Hoà Phát Group (HPG) (with a weight of 2.84%)and Vinhomes (VHM) (2.27%).

On the other hand, for the less prominent index set, the MSCI Frontier MarketsSmallcaps Indexes, five Vietnamese stocks have been added, includingPetroVietnam Gas JSC (GAS), Hoa An JSC (DHA), Nafoods Group Joint Stock Company(NAF), Van Phat Hung Corporation (VPH), and Vietnam Tanker Joint Stock Company(VTO). Conversely, the index removes Nam Kim Group (NKG), Song Da Urban &Industrial Zone Investment and Development (SJS) and Vietnam Power DevelopmentJoint Stock Company (VPD), in which NKG and SJS were removed to be added to theMSCI Frontier Markets Index.

Vietnam currently holds the largest market share in the MSCI Frontier MarketsSmallcaps Indexes, with a weight of 31.47%. However, there are no notable fundscurrently investing in frontier markets based on this index set.

The changes to the above index sets will take effect from February 29, 2024.The next restructuring will occur on May 14, 2024./.

VNA

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