PetroVietnam index to track affiliates

PetroVietnam index to track affiliates

The PetroVietnam Group expects to introduce the PVN Index next month to track the performance of its listed affiliated companies on the nation's stock market.

The Index would include the 30 PetroVietnam affiliates with shares listed on the HCM City Stock Exchange, the Ha Noi Stock Exchange and the unlisted public company market (UPCoM), said PetroVietnam Securities Co director Pham Quang Huy.

The PVN Index would also be the only stock index in Viet Nam to track share prices in four currencies– euros, US dollars, Japanese yen and Vietnamese dong– helping shares trade on the international market.

PetroVietnam deputy director Nguyen Tien Dung said his company had invested heavily in creating an index in accordance with international standards.

"This is one step in our aim to incorporate transparency and good governance," Dung said.

Like the VN-Index, the PVN-Index would be connected to Bloomberg's market news website and would be a composite of 88 component indicators, divided into three main groups.

First, PVN All-Share would track all affiliated stocks. Its PVN All-Share Continuous index would track share values in real time, while PVN All-Share HNX and PVN All-share HSX would separately track indicators for shares listed on each of the nation's two major stock exchanges.

The second group would be the investment index PVN-10 which would include the 10 leading PetroVietnam subsidiaries in terms of market capitalisation and trading volume, including Phu My Fertilisers (DPM), PetroVietnam Construction Co (PVX) and insurer PVI Holdings (PVI). Like the recently announced HNX30, it would be able to track transactions in real time and would apply a capped ratio of 15 per cent on the capitalisation of each stock to restrict distortion caused by a single dominant share.

Lastly, the sector index would separately track companies in the materials, consumer services, finance, industry, oil and gas and utility sectors.

"The PVN Index will help the market more clearly identify the brands of PetroVietnam's member businesses, creating an effective new channel for raising funds as index-based investment funds are becoming a trend," said Huy.

Each PetroVietnam member will pay an anual fee of VND200-300 million (US$9,500-14,200) to be included in the PVN Index

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