10:17 | 04/10/2018 Finance - Banking
The London-based financial and business information firm FTSE Russell has added Vietnam’s stock market to its watchlist for possible reclassification as a secondary emerging market, according to an announcement from the Ho Chi Minh City Stock Exchange (HOSE) last week.
|The recognition from FTSE Russell is a positive signal on a possible improvement of the Vietnamese stock market’s status in the international market|
According to an FTSE Russell report released on September 26, Vietnam and Argentina have been listed on the reclassification list.
HOSE said that Vietnam's equity market has met several of FTSE Russell's ranking criteria for a secondary emerging market, including the legal environment, infrastructure and market quality, deposit and clearing.
In order to be officially upgraded, the Vietnamese market will need to continue to maintain and improve the criteria set out within a minimum review period of one year, the HOSE stated.
The recognition from FTSE Russell would help change the status of the national financial market, promising to bring positive impacts on its ability to attract foreign investment, as well as improving market liquidity, the quality of listed companies and motivation to further improve the legal framework, the HOSE’s statement added.
The closing session on Thursday saw Vietnam’s stock market indexes filled with “green”. The VN-Index increased 5.75 points to 1,015.37; HNX-Index was up 0.50 points to 116.08; UpCom gained 0.15 points to 54.19; and VN30 Index increased 5.06 points to 989.45.
FTSE Russell offers stock market indices and associated data services for asset classes in more than 80 countries and 98 pct of global investable markets. As of December 31, 2017, there were US$1.7 trillion in assets managed under the FTSE global index, with US$1.4 trillion invested following this index.
FTSE Russell, along with MSCI, is one of the two largest providers of stock indexes in the world. It runs two classifications in March and September.