Introduction

 

The HNX-Index (HASTC-Index previously) is calculated since the first day of official trading session of the market (14/7/2005) or the base day. This index shows the change in prices of all stocks traded on Hanoi Stock Exchange. The index is calculated by comparing the current market capitalization to the market capitalization of all listed stocks on the base day. The value assigned to the base day index is 100.

Methodology

 

The computation follows the procedure below:

 

                                     Market capitalization at present

HNX-Index       =  -------------------------------------------------------------  x100

                                     Market capitalization on the base day

 

Or:

                                 ∑ P_it x Q_it

HNX-Index   = --------------------- x 100

                                 ∑  P_io x Q_it

 

Where:

P_it: Market value of stock i at present

Q_it: number of listed shares of stock i at present

P_io: Market value of stock i on the base day

i: 1,……,n

During the trading session, HNX-Index will be calculated after any stock transaction is executed. Therefore, when the executed price of any transaction changes, the HNX-Index will change as well. The HNX-Index shows the change of prices during the whole trading session, which forms the online HNX index chart. The HNX-Index at the close is calculated basing on closing prices of stocks.

Example:

a. On the base day 14/7/2005 with the first trading session:

No.	Stock code	Closing price	Number of listed shares	Market value
01	CID	17,800	541,000	9,629,800,000
02	GHA	16,500	1,289,480	21,276,420,000
03	HSC	55,000	580,000	31,900,000,000
04	KHP	15,000	15,252,260	228,783,900,000
05	VSH	13,000	122,500,000	1,592,500,000,000
06	VTL	22,000	1,800,000	4,050,000,000
	Total			1,924,590,120,000

                                    1,924,590,120,000

=> HNX-Index = ---------------------------------------- x 100 =100

                                    1,924,590,120,000

 

Market capitalization on base day  = 1,924,590,120,000

 

b. At the close of Day 2’s session on 18/7/2005:

No.	Stock code	Closing price	Number of listed shares	Market value
01	CID	16,000	541,000	8,656,000,000
02	GHA	18,200	1,289,480	23,468,536,000
03	HSC	53,600	580,000	31,088,000,000
04	KHP	14,500	15,252,260	221,157,770,000
05	VSH	13,000	122,500,000	1,592,500,000,000
06	VTL	21,000	1,800,000	37,800,000,000
	Total			1,914,670,306,000

 

           1,914,670,306,000

=> HNX-Index =            ----------------------------------- x 100 =99.48

           1,924,590,120,000