MCH to become the largest consumer stock on VN-Index

MCH to become the largest consumer stock on VN-Index

Securities firm Vietcap has assessed the prospect of Masan Consumer (MCH) on listing on the Ho Chi Minh City Stock Exchange (HSX) on December 25.

Vietcap pointed out that MCHmay be considered for margin trading once the stock stabilises. Hoang Nam, director of research at Vietcap, said, “According to current regulations, after six months of listing on HSX, MCH could be eligible for margin lending.”

Against the backdrop, the company's operational foundation is a key factor in determining how many capital inflows it can absorb after listing. Masan Consumer is one of the largest consumer goods companies in the market, with a product portfolio spanning several essential segments and a national distribution system.

The company maintains a stable business foundation, with high revenue and profit compared with the market average. Its gross profit margin is among the leading group in the fast-moving consumer goods (FMCG) industry. Over the past few years, MCH has maintained a positive trajectory in revenue and business cash flows and improved operational efficiency, thereby creating a solid financial foundation and attracting great interest from institutional investors.

According to VCI's estimates, upon its official listing on HSX, MCH will become the largest consumer stock by market capitalisation on the VN-Index and rank seventh among the largest companies by market capitalisation in the overall market. This position underscores MCH's increasingly prominent role in Vietnam's stock market structure, where large-scale consumer stocks remain relatively scarce.

By achieving such a market capitalisation, MCH is expected to increase its presence in important indices while expanding its access to institutional and long-term investors, who typically prioritise leading companies with scale and sustainable growth prospects.

The factors are important conditions for a stock to improve its liquidity and meet the necessary criteria for trading on HSX.

From a market perspective, margin trading is a familiar tool that enhances investors' purchasing power and capital efficiency. In practice, even stocks with strong fundamentals may struggle to attract large capital inflows if margin trading is not granted. Conversely, once a stock becomes eligible for margin trading, investor participation typically increases, leading to a notable improvement in liquidity.

Beyond margin trading, Vietcap also highly appreciates MCH's potential for inclusion in key index baskets in the medium and long term, as the stock gradually meets key criteria on market capitalisation, free-float ratio, and liquidity after listing.

Nam said, "There is a high chance of MCH being included in key index baskets, starting with the VN30. By September 2026, Masan Consumer may be eligible for large index baskets for passive investors in Vietnam, including well-known indices such as VanEck and Xtrackers. Masan Consumer has almost fully met the requirements for inclusion in the FTSE Emerging Markets index. This marks a milestone that Vietnamese investors have been waiting for more than a decade."

Leveraging the inclusion in index baskets, MCH not only expands the base of institutional and passive investors but also increases the presence of stocks in the capital market. These factors are viewed as medium-term support drivers, rather than creating an immediate short-term impact.

VIR