Shares of FLC Faros
Construction (HOSE: ROS) have offered good returns to both foreign and domestic traders since the company listed on the Ho Chi Minh City Stock Exchange (HOSE) seven months ago.
Among the biggest winners are foreign-run funds such as MSCI and FTSE Vietnam ETF.
Overseas investors net purchased a combined 4.04 million ROS shares worth 648.3 billion dong ($28.5 million) year to March 30.
In the first quarterly review this year, ROS was included into the basket of FTSE Vietnam UCITS ETF after meeting criteria for listing time as well as liquidity.
During two weeks after funds announced their review, foreign investors net bought 4.14 million ROS shares valued at 673 billion dong ($29.6 million). Buying force came mainly from FTSE Vietnam ETF, which had been forecast to buy in 4.0 million to 4.5 million shares.
Even though ROS was also added to the MSCI Frontier Markets Index, the underlying index for MSCI Frontier Markets Index ETF, it is highly likely that FTSE Vietnam ETF was the biggest buyer as foreigners’ net buying volume of ROS shares came at 4.04 million shares year to March 30.
Given the price and volume, it is calculated that foreign traders bought ROS shares at an average price of 160,000 dong apiece.
With the stock price of ROS bouncing back, FTSE Vietnam ETF is having profits from investing in ROS. Similarly, MSCI Frontier Markets Index ETF is gaining as it had acquired ROS shares even before FTSE Vietnam ETF.
High trading volume, ranging between two million to three million shares per day, is also a vote of confidence for these funds’ returns.
ROS shares settled 0.68% higher at 163,200 dong each on March 31, with 3.4 million shares traded.
As such, ROS has joined the list of winning tickers for foreign funds such as VietJet Air (VJC) in case of GIC, Dragon Capital
, Mobile World (MWG) for PYN Elite Fund and Mekong Enterprise Fund II.