Vietnam realty stock deleted from MSCI Frontier Markets Index

Global index provider MSCI has removed the stock of Nam Long Investment Corporation (HoSE: NLG) from its MSCI Frontier Markets Index.

MSCI added nine to and deleted five tickers from the index, part of its May review.

After the review, the index will have 213 constituents, with changes taking place as of the close of May 31.

As of March 29, Vietnamese stocks still accounted for the largest portion of the MSCI Frontier Markets Index’s basket, at 28.57%, followed by Romania and Morocco with respective 12.21% and 9.99%.

Among the top 10 constituents, Vietnam had three representatives, which are Hoa Phat Group (Ho Chi Minh Stock Exchange or HoSE: HPG) with an index weight of 2.91%; Vinhomes (HoSE: VHM) with 2.21%; and Vingroup (HoSE: VIC) with 1.85%.

A host of international funds are investing in frontier markets, including Vietnam, tracking the MSCI Frontier Markets Index. The next review will take place on August 13 (Hanoi time).

Meanwhile, MSCI made 27 additions and six deletions from the MSCI Frontier Markets Small Cap Index in the latest review.

Of them, 10 Vietnamese tickers namely INN, DSN, NDN, IVS, SGN, ITA, TCI, TVC, TEG, and NSC were added, while three Vietnamese constituents namely EVG, TCM, and VNE were removed.

After the review, there will be 370 constituents in the MSCI Frontier Markets Small Cap Index.

As of April 30, Vietnam accounted for the largest weight at 31.48%, followed by Bangladesh with 21.5% and Pakistan with 8.72%. However, the country had no representatives in the index’s top 10 constituents.

The Vietnamese government is ironing out obstacles to get its stock market status upgraded from “frontier” to “emerging” markets next year, firstly by FTSE Russell and next by MSCI.