Kuwait removal boosts Vietnam stock proportion on MSCI Frontier Markets 100 Index

November 11, 2020 | 17:56

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MSCI announced the gradual removal of Kuwait stocks from MSCI Frontier Markets 100 Index, leading to an increase of the proportion of Vietnamese stocks.

kuwait removal boosts vietnam stock proportion on msci frontier markets 100 index

With Kuwait stocks removed from the MSCI Frontier Markets 100 Index, Vietnamese stocks will make up a larger proportion

On November 9, 2020, MSCI has announced the schedule for the reclassification of Kuwait in the MSCI Frontier Markets 100 Index. After reaching a consensus, MSCI maintained the approval of the proposed roadmap, cited from Bao Viet Securities Company (BVSC).

Accordingly, the percentage of Kuwait stocks in the MSCI Frontier Markets 100 Index shall be reduced gradually in five review periods, starting from the November review and ending at the November 2021 review instead of dropping them in one review period only.

The given reason is to avoid market volatilities and support restructuring due to the pretty large percentage of Kuwait stocks in the MSCI Frontier Markets 100 Index.

Experts ar BVSC believe that based on the data of MSCI and iShares, the proportion of Vietnam Stocks through five review periods will increase gradually from 12.68 to 28.78 per cent. Besides, based on the results announced by MSCI, two new stocks are likely to be included in the MSCI Frontier Markets 100 Index, which are Kido Group (HSX: KDC) and Phat Dat Real Estate Development JSC (HSX: PDR).

For the MSCI Frontier Markets Index, Kuwait stocks will be completely removed from the index from the review period in November 2020 to MSCI Emerging Markets Index.

By Lam Tien

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