HOSE issues Rules for constructing and managing VNSHINE index

HOSE launches additional index tracking dividend-paying stocks.

According to Decision No. 1105/QD-SGDHCM, Vietnam Shareholder Interest Enhanced Index (VNSHINE) is an investment index, including a minimum of 15 and a maximum of 30 stocks, selected from the VNAllShare basket according to a strict criteria system.

The first condition to be considered for inclusion in the index is that the stock must have paid cash dividends continuously for 3 consecutive years prior to the year of review. In addition, the enterprise must have been listed for at least 3 years and have an average matched transaction value of 10 billion VND/day or more.

After the basic screening step, stocks are evaluated according to the “shareholder yield score” system, which includes 3 components: cash dividend yield, change in net debt and stock dilution. Each factor is converted on a 100-point scale and applied different weights depending on the industry group, before being aggregated for ranking. Stocks with higher shareholder yield scores will be prioritized for inclusion in the index basket, in accordance with the calculation rules of the Ho Chi Minh City Stock Exchange (HOSE).

From the date of data closure to the effective date of the index, HOSE continues to review and remove stocks that fall under warning, control, trading restriction, trading suspension, trading suspension or delisting. The rules also clearly stipulate the mechanism for replacing stocks during the period to ensure the continuity and stability of the index.

The VNSHINE Index is calculated based on the free-float adjusted capitalization and applies a weight limit to each stock. The price index is announced every 5 seconds during the entire trading period, with a base point of 1,000 points. The list of component stocks is reviewed annually in April of each year, and information related to the free-float ratio, circulating volume and weight limit are updated quarterly in January, April, July and October of each year.

In parallel with the announcement of the VNSHINE Index Rules, HOSE said that earlier in October it had launched the VNDIVIDEND index, tracking a group of stocks with cash dividend payment policies. The addition of the VNSHINE index helps investors have more reference tools in searching for businesses that maintain stable dividend policies, healthy cash flow and focus on shareholder benefits.

CHAU ANH

Source: https://nhandan.vn/hose-ban-hanh-quy-tac-xay-dung-va-quan-ly-chi-so-vnshine-post924240.html