Morgan Stanley adds names of Vietnamese banks to Frontier Market Index
Many Vietnamese banks have made breakthroughs in recent times and have attracted the attention of leading financial institutions in the world.
The world's leading stock index research and analysis organization Morgan Stanley Capital International (MSCI) has decided to add SHB shares of the Saigon - Hanoi Commercial Joint Stock Bank to the portfolio of the MSCI Frontier Market Index.
The MSCI Frontier Market Index consists of 81 component stocks selected from mid- and large-cap value stocks from 28 frontier markets (FM). These stocks account for about 85% of the total market capitalization adjusted for free transfer in each country. By April 30, 2021, Vietnam accounted for the highest proportion in the MSCI Frontier Markets Index with 31.78%, up from 29.61% of three months ago.
During the period of May 25-29, 2021, the iShares MSCI Frontier 100 ETF will restructure its portfolio.
In addition, there are many other funds using the MSCI Frontier Markets Index as a reference index, such as the Schroder ISF Frontier Markets Equity fund ($431 million), Magna Umbrella Fund PLC - Magna New Frontiers Fund ($362 million), Magna Umbrella Fund PLC - Magna New Frontiers Fund ($362 million), Templeton Frontier Markets Fund ($359 million), Barings ASEAN Frontiers Fund ($330 million) …
SHB is the only large-cap bank that has not had foreign capital. The MSCI index will help SHB increase its ability to attract foreign capital flows, because ETFs will focus on buying and selling their fund certificates based on stocks in these index baskets.
In 2021, SHB set out a breakthrough plan with two profit scenarios, in which it targeted a growth rate of at least 78% in 2021 and paying dividend by shares, at the rate of 10.5%.
This year, SHB will raise capital from the offering of shares to existing shareholders, at the ratio of 100:28 and the expected offering price of VND12,500 per share - half the market price. SHB's charter capital will increase sharply to more than VND26,674 billion this year.
In the past several months, bank stocks have made a strong breakthrough and have been a mainstay in the stock market of Vietnam.
SHB shares doubled from VND12,000 in early February to nearly VND25,000 per share at present.
Meanwhile, Techcombank (TCB) shares of billionaire Ho Hung Anh increased more than 2.5 times from VND19,000 last July to VND50,000 per share at present. VPBank share rose about 3 times in the past 6 months. Sacombank (STB) shares also doubled in the past six months.
Many banks reported high profits in 2020 and the first quarter of 2021 and they set high profit for this year.
Ms. Tran Thi Thu Hang, CEO of Sunshine Group, has become the youngest leader in Vietnam’s banking industry after being appointed chairwoman of KienLongBank.
KienLong Bank share prices have been increasing sharply in recent days despite the downward pressure on the overall market.