The Ho Chi Minh City Stock Exchange (HoSE) has introduced a new set of rules for building and managing the VNMITECH index, targeting stocks in modern industry and technology. This index aims to closely reflect the performance of high-growth potential sectors on Vietnam’s stock market.

The index will comprise between 30 and 50 constituent stocks selected from VNAllshare Materials, VNAllshare Industrials, and VNAllshare Information Technology indices, meeting specific screening criteria.

Eligible stocks must have a minimum free-float adjusted market capitalization of VND 1.5 trillion (USD 57.3 million) and an average matched order trading value of at least VND 20 billion (USD 764,000) per day. If fewer than 30 stocks meet both conditions, the largest remaining by free-float market cap will be added, prioritizing higher trading value in case of a tie.

Currently, VNAllshare Materials includes 42 stocks with a total market capitalization near VND 500 trillion (USD 19.1 billion), featuring names such as HPG, DGC, and GVR. VNAllshare Industrials has 74 stocks worth nearly VND 450 trillion (USD 17.2 billion), including GEX, BMP, and REE. VNAllshare Information Technology has only five stocks - FPT, DGW, ELC, CMG, and ICT - valued at around VND 180 trillion (USD 6.9 billion).

The list of constituents will be reviewed twice a year, in January and July. Free-float ratios, shares outstanding, market cap weight caps, and liquidity-based weight limits will be updated quarterly in January, April, July, and October.

VNMITECH will be calculated using free-float adjusted market capitalization, applying caps for individual stocks and for those from VNAllshare Materials. The index will be updated every five seconds on all trading days.

The VNMITECH TRI (Total Return Index) will also be published, reflecting both price movements and reinvested dividends, calculated once daily at market close.

Hanh Nguyen