CBV Index
Encyclopedia
CBV-Index, or Corporates and Businesses of Vietnam Index, is a market index containing the stocks of 50 leading corporations of Vietnam
.
CBV-Index, or CBV LargeCap, together with CBV MidCap
and CBV SmallCap
form the broader CBV Total
. All stocks in these indices are traded on the two Vietnam stock markets, Ha Noi and Ho Chi Minh City Securities Trading Centers.
. The Index was known as the first and only index that reflects the performance of the whole stock market of Vietnam, covering securities listed on the only two exchanges, Hanoi Securities Trading Center and Hochiminh Stock Exchange. Unlike indexes made by exchange houses as VN-Index and Hastc-Index, which are all market cap weighted, CBV Index was the first free-float market cap weighted index of Vietnam equity market. In March, 2007, CBV 20
and CBV 10
which form the part of CBV-Index was published in order to meet the demand for Index investors in Vietnam. CBV MidCap
, CBV SmallCap
for Mid-Cap and Small-Cap companies also came out at the same time. In April, 2007, the Council of Corporates and Businesses of Vietnam Indices was founded.
The percentage of shares available for public investors- public float (IWF- Investable Weight Factor) will be calculated using the following formula:
:::{| style="vertical-aligne: middle; border-collapse: collapse; text-align: center" cellspacing=1
|rowspan="2" | IWF =
| style="border-bottom: 1px solid black" | Number of shares available for public
|-
| style="border-top: 1px solid black" | total number of listed shares
|}
Then, float adjusted market capitalization index will be calculated according to the following formula:
|rowspan="2" | Index =
| style="border-bottom: 1px solid black" |ΣiPiQiIWFi
|-
| style="border-top: 1px solid black" | Divisor
|}
Pi is market price of share i, Qi is the number of listed shares. IWF if the percentage of shares available for public investors, Divisor (D) is the index divisor. Divisor D will be adjusted so that CBV index will not be affected as the result of issuance of additional shares, addition of newly listed companies or removal of listed companies in CBV index.
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
.
CBV-Index, or CBV LargeCap, together with CBV MidCap
CBV MidCap
CBV MidCap is a stock market index indicating 30 out of 60 stock prices of medium-size companies in Vietnam. The medium-size companies are classified as those having total market capital from VND 150 billion to 500 billion with highest liquidity in these medium-capitalization group.CBV MidCap, CBV...
and CBV SmallCap
CBV SmallCap
CBV SmallCap is a stock market index indicating the stock prices of 30 out of 73 small-size companies in Vietnam. The small-size companies are classified as those having total market capital from VND 50 billion to 150 billion with highest liquidity in this small-capitalization group.CBV SmallCap,...
form the broader CBV Total
CBV Total
CBV Total is a stock market index indicating the performance of Vietnam's stock markets. It shows all stocks that are listed in the two Vietnam trading markets, the Hanoi Securities Trading Center and Hochiminh Stock Exchange....
. All stocks in these indices are traded on the two Vietnam stock markets, Ha Noi and Ho Chi Minh City Securities Trading Centers.
History
At the beginning of 2007, CBV-Index was introduced to the financial market of Vietnam by Bien Viet SecuritiesBien Viet Securities
-Overview:Bien Viet Securities J.S.C. is Vietnam provider of financial and investment services. CBV has been well known as the first and largest provider of Vietnam’s financial market indexes and economic indicators ....
. The Index was known as the first and only index that reflects the performance of the whole stock market of Vietnam, covering securities listed on the only two exchanges, Hanoi Securities Trading Center and Hochiminh Stock Exchange. Unlike indexes made by exchange houses as VN-Index and Hastc-Index, which are all market cap weighted, CBV Index was the first free-float market cap weighted index of Vietnam equity market. In March, 2007, CBV 20
CBV 20
CBV 20 is a stock market index that tracks 20 leading companies with highest total market capital and liquidity in Vietnam Stock Markets. It is part of the broader CBV Index and it also includes CBV 10.-External links:**...
and CBV 10
CBV 10
CBV 10 is a stock market index that tracks 10 leading companies with highest total market capital and liquidity in Vietnam Stock Markets. It is part of the broader CBV Index.-External links:**...
which form the part of CBV-Index was published in order to meet the demand for Index investors in Vietnam. CBV MidCap
CBV MidCap
CBV MidCap is a stock market index indicating 30 out of 60 stock prices of medium-size companies in Vietnam. The medium-size companies are classified as those having total market capital from VND 150 billion to 500 billion with highest liquidity in these medium-capitalization group.CBV MidCap, CBV...
, CBV SmallCap
CBV SmallCap
CBV SmallCap is a stock market index indicating the stock prices of 30 out of 73 small-size companies in Vietnam. The small-size companies are classified as those having total market capital from VND 50 billion to 150 billion with highest liquidity in this small-capitalization group.CBV SmallCap,...
for Mid-Cap and Small-Cap companies also came out at the same time. In April, 2007, the Council of Corporates and Businesses of Vietnam Indices was founded.
Selection Criteria
The components of the CBV-Index are selected by its council. The council selects the companies in CBV-Index so that they meet the following criteria:- The companies must be listed in either Hanoi and Ho Chi Minh stock exchange centres (HASTC and HOSTC)
- Large Market Capitalization: Total market capital of the company should be greater than 500,000,000,000 VND
- High liquidity: the ratio of annual dollar value traded to float adjusted market capitalization should be 0.4 or greater-Sector representative: Corporations are representatives of main economic sectors, sector balance is maintained.
- Types of corporations: Corporations must be operating companies; holding companies will not be listed in CBV-Index portfolio.
Methodology
CBV-Index measures the change of average stock market prices using float adjusted market capitalization method.The percentage of shares available for public investors- public float (IWF- Investable Weight Factor) will be calculated using the following formula:
:::{| style="vertical-aligne: middle; border-collapse: collapse; text-align: center" cellspacing=1
|rowspan="2" | IWF =
| style="border-bottom: 1px solid black" | Number of shares available for public
|-
| style="border-top: 1px solid black" | total number of listed shares
|}
Then, float adjusted market capitalization index will be calculated according to the following formula:
-
-
- {| style="vertical-aligne: middle; border-collapse: collapse; text-align: center" cellspacing=1
-
|rowspan="2" | Index =
| style="border-bottom: 1px solid black" |ΣiPiQiIWFi
|-
| style="border-top: 1px solid black" | Divisor
|}
Pi is market price of share i, Qi is the number of listed shares. IWF if the percentage of shares available for public investors, Divisor (D) is the index divisor. Divisor D will be adjusted so that CBV index will not be affected as the result of issuance of additional shares, addition of newly listed companies or removal of listed companies in CBV index.