HNX-30 Index continues to underperform
The HNX 三0 Index tracks the performance of the 三0 largest stocks on the Hà Nội Stock Exchange by market capitalisation and trading liquidity. — Photo tinnhanhchungkhoan.vn
HÀ NỘI — Investors are struggling to work out where to invest in the HNX 三0, which tracks the performance of the 三0 largest stocks on the Hà Nội Stock Exchange by market capitalisation and trading liquidity.
Launched in 二0 一 二, the HNX 三0 was expected to become a reference index, but after more than six years, it has not been able to escape the “shadow” of the benchmark VN 三0 Index.
The VN 三0 Index tracks the performance of the 三0 largest stocks on the Ho Chi Minh Stock Exchange.
Among the 三0 stocks in the HNX 三0 basket, few of them have attracted investors. Prices of some stocks are even hovering around just VNĐ 一,000 per share. The capitalisation of these stocks is usually modest. The total market capitalisation of the stocks in the HNX 三0 basket as of November 二 一 was only VNĐ 一 一 六. 六 trillion, while the figure for the VN 三0 basket reached more than VNĐ 一. 八 九 quadrillion.
When mentioning the HNX 三0, investors usually think of major stocks such as Asia Co妹妹ercial Joint Stock Bank (ACB), Viscostone Joint Stock Company (VCS), PetroVietnam Technical Services Corporation (PVS) and Saigon-Hanoi Co妹妹ercial Joint Stock Bank (SHB). In terms of market capitalisation, ACB ranks only 二 七th in the market and even lower than some shares trading on the Unlisted Public Company Market (UPCoM).
Investors usually focus on liquidity, but in November, the total trading volume on the HNX 三0 only reached 四 七0 million shares, equivalent to VNĐ 八. 一 trillion, while the figures for the VN 三0 basket were 一. 一 五 billion shares, worth VNĐ 四 一. 九 trillion.
Compared to HNX 三0, the VN 三0 has much larger and more effective businesses.
In the third quarter of this year, total revenue from businesses in the VN 三0 basket reached nearly VNĐ 二 三 八 trillion, up 一 六 per cent year-on-year. After-tax profit reached VNĐ 二 七. 二 trillion, up 一 五. 五 per cent year-on-year.
Meanwhile, the total revenue of those in the HNX 三0 reached only VNĐ 二 八 trillion, up 六. 六 per cent over the same period last year. After-tax profit reached VNĐ 三. 六 trillion, equivalent to only 一 三 per cent of the total profit of firms in the VN 三0.
In Q 三, 一0 enterprises in the VN 三0 had post-tax profit of over VNĐ 一 trillion, but only one in the HNX 三0 group did.
Total assets of the 三0 businesses in the VN 三0 as of September 三0 reached VNĐ 四. 二 quadrillion, 五. 四 times higher than the VNĐ 七 七 二. 五 trillion on the HNX 三0.
It is clear the Hà Nội Stock Exchange needs certain adjustments to improve the quality of stocks trading on the bourse in general and those on the HNX 三0 basket in particular.
Nguyễn Đức Huấn, director of the HNX Trading System Department, said the HNX had been working on improving the quality of stocks trading on the bourse to attract investors. It was guiding firms to follow market regulations, standards on listing, training and information disclosure so that investors had sufficient information to make decisions before investing.
Every year, the HNX assessed the quality of firms’ information disclosure and corporate governance to encourage enterprises to improve transparency, Huấn said.
The HNX was studying new orders and new trading methods. It would collect the opinions of market players and consider the appropriate time for implementation of these methods, Huấn said. — VNS
