For most of the start of the month, both Hanoi and Ho Chi Minh indexes have fallen synchronously. However, over the recent couple of days the two indexes have taken different paths once again and as usual (or at least this is what has happened over the last couple of years now) the HOSE index has outperformed Hanoi’s index. You can see the orange line crossing over the blue one over the last two days in our below graph.
At Anh Thomas, we believe that the HNX index has more potential for growth than the HOSE index.
Only time will tell and it is important to note that there still are many stocks that belong to the HOSE index that we find extremely interesting to buy.
Since the start of the year, once again we can see that the HOSE index outperforms considerably the HNX index. Indeed, HNX YTD return is close to -3% while the HOSE index YTD return is above +8%.
Investors like the fact that stocks listed on the HOSE market are in general stocks from large companies (sometimes with international business) while stocks from the HNX index are penalized by their high dependence on the local economy and by their smaller sizes. In other words, during times of uncertainty (not especially in Vietnam but worldwide), investors tend to invest in stocks less risky and these are in general the stocks of the largest companies.