A common stock index was jointly unveiled earlier this week by Vietnam’s securities depository and two stock exchanges, with a view to offering investors more comprehensive insights into the country’s stock market.

Chairmen of the Ho Chi Minh City Stock Exchange (HOSE), the Hanoi Stock Exchange (HNX), and the Vietnam Securities Depository (VSD) on Friday afternoon attended a ceremony in the southern city to introduce the country’s third stock index VNX Allshare.

VNX Allshare is composed of 388 stocks, or half of all the stocks currently listed on HNX and HOSE, the respective benchmarks of which are HNX-Index and VN-Index.

The Ho Chi Minh City bourse has 208 of its stocks listed on VNX Allshare, while the remaining 180 stocks are from HNX.

Stocks included in the VNX Allshare index are selected based on their capacity, float and liquidity. 

The introduction of VNX Allshare is regarded as a milestone for the Vietnamese stock market, as the index offers an additional market indicator to investors and helps improve consistency and standardization for the market’s system of indicators to close the gap with international practices.

The stocks selected for the new index account for around 87.5 percent of the combined market capitalization of the two bourses, according to a report by Finance Ministry-run news website Thoi Bao Tai Chinh Viet Nam (Vietnam Economic Times).

According to HOSE Chairman Tran Dac Sinh, the current indexes by HOSE and HNX are built upon different sets of principles laid out by the two stock exchanges, posing a challenge for investors who seek a panoramic view of listed stocks in Vietnam.

Therefore the two bourses have worked closely together since April on developing a common index with the help of well-trained and experienced experts in the field, Sinh said.

The VNX Allshare index will be officially launched on October 24 with the base value score of 1,000.

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