VietNamNet Bridge - The listing of many large corporations recently has changed the VN Index and capitalization value, but also capital flow and ways of making investments.


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Vinhomes shares (VHM) finished the first trading session on May 17 with the closing price of VND110,500 per share, an increase of 20 percent. It became the share with the second largest capitalization value, VND296 trillion, or $13 billion, in the stock market. 

The share with the largest capitalization value is VIC of Vingroup, its holding company, at VND342.9 trillion, or $15 billion.

The listing of VHM has led to big changes in the positions of shares. Vinamilk share has fallen by one grade from the second position. 

Meanwhile, all three shares related to Vingroup are listed among the top 10 enterprises with largest capitalization value. 

The listing of many large corporations recently has changed the VN Index and capitalization value, but also capital flow and ways of making investments.

They are Vingroup (10.4 percent), VinHomes (9.5 percent) and Vincom Retail (VRE) (2.8 percent)

Securities companies estimate that the total capitalization value of VIC, VHM and VRE is roughly VND719.5 trillion, accounting for 22.7 percent of total capitalization value of the stocks on HOSE (the HCMC Stock Exchange). Nine bank shares account for 20.6 percent in total.

Accounting for such a big proportion, the three shares’ ups and downs have a big impact on the VN Index.

There are 354 shares listed on HOSE, the largest Vietnamese bourse. However, most capitalization value concentrates on a few shares. The 30 shares in VN30 alone amount to 84 percent of the total market, while the 10 largest shares amount to 60 percent.

Therefore, if market makers or foreign investors focus on purchasing or selling shares in top 10 shares in general and Vingroup-related shares in particular, this will be enough to change the VN Index chart.

Since it holds a large proportion in VN Index, VHM will be eyed by investment funds and their purchases may support the share price performance in the time to come, thus having positive influence on the VN Index, which is now under pressure of correction.

Analysts noted that in the past, shares with large capitalization value such as VJC (Vietjet Air), Novaland (NVL), VP Bank (VPB) and HD Bank (HDB) all received big attention from investment funds after they entered the bourse. 

They believe that in the future VHM will be added to the VN30 ‘basket’ if it can satisfy the requirements, such as the one on liquidity.

The presence of large corporations’ shares recently has changed the way domestic and foreign investors invest. Some institutional and individual investors have sold other shares to make profits and reserved money for new shares.


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