Phat Dat Real Estate might be added to the FTSE ETF portfolio with restructuring

08:00 | 08/02/2021
The shares of Phat Dat Real Estate Development JSC (HSX: PDR) may be added to two FTSE exchange traded funds (ETFs) portfolios in the first quarter of 2021.
phat dat real estate might be added to the ftse etf portfolio with restructuring
Phat Dat Real Estate could appear in two major ETF portfolios in March

Two ETFs Vaneck Vectors Vietnam ETF (VNM ETF) and DB x-trackers FTSE Vietnam UCITS ETF (FTSE ETF) will restructure their portfolios by March 22.

Based on the price data at the closing of the trading day on February 3, Phat Dat Real Estate (HSX: PDR) shares may be added to the FTSE ETF's portfolio with a weight of about 1.7 per cent corresponding to about 2.6 million purchased shares, according to Bao Viet Securities Company (BVSC).

Data from the Ho Chi Minh City Stock Exchange revealed that PDR's average capitalisation in the second half of 2020 was over VND14.7 trillion ($639.13 million), ranking 31st in the whole market.

In 2020, Phat Dat inked strategic agreements with several big names such as property developer Danh Khoi Holdings – Netland Investment, Central Construction JSC, Rita Vo, Kohler, Aka Furniture, and Turner to implement the complex commercial and luxury apartment complex Astral City in Binh Duong province with the total estimated investment of VND8.282 trillion ($360.1 million).

In 2019, the company also shook hands with Samty Asia Investments Pte., Ltd., a subsidiary of Samty Corporation – a Japanese real estate developer – with an investment of $22.5 million to support development assistance projects in Ho Chi Minh City.

Phat Dat's shares were also added to the VN30 Index, which accounted for around 80 per cent of the market capitalisation and 60 per cent of the total trading value in the local stock market on February 1.

Besides Phat Dat Real Estate, stocks bought to increase their proportion in this restructuring are Vingroup (HSX: VIC), Vinamilk (HSX: VNM), and Hoa Phat Group (HSX: HPG). On the other hand, BVSC predicts that no ticker would be excluded from the FTSE ETF's portfolio in this restructuring period. However, the shares of Vinhomes, Masan (HSX: MSN), and Vincom Retail (HSX: VRE) can be sold down in this restructuring

As for the VNM ETF's portfolio, BVSC forecasts that no Vietnamese stocks will be added or excluded in the January restructuring period. Currently, Vietnamese stocks account for about 65 per cent of the fund's portfolio. If there are no new foreign shares added, BSVC predicts that the proportion of Vietnamese shares will range from 65-68 per cent of the fund's portfolio.

Of this, the proportion of stocks like Vinamilk, Vingroup, Thanh Thanh Cong-Bien Hoa JSC (HSX: SBT), and others, may increase significantly. On the contrary, stocks to be sold down may include Vinhomes, Novaland (HSX: NVL), and Masan.

By Lam Tien

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