MSCI Weights Down Thai Market 0.04%, Lowering Net Trade by US$114Mn

MSCI weighted down Thai stock market from 1.9% to 1.87%, a decrease of 0.04%, accounting to US$114 million, and announced its change in constituents by adding DELTA–STGT to MSCI Global Standard Indexes. Meanwhile JMART–RBF and other 7 stocks have been included in MSCI Global Small Cap Indexes, which will take place as of the closing of November 30, 2020.

 

In MSCI Global Small Cap Indexes, Banpu Power Public Company Limited (BPP), Ichitan Group Public Company Limited (ICHI), Jay Mart Public Company Limited (JMART), MK Restaurant Group Public Company Limited (M), R&B Food Supply Public Company Limited (RBF), Thaifoods Group Public Company Limited (TFG), Tisco Financial Group Public Company Limited and VGI Public Company Limited (VGI) were added into the indexes.

 

Regarding the research of equity’s movement after entering MSCI Global Standard, Tisco Securities found out that those stocks usually respond positively with an upside trend of 77% within the next 2 weeks, and generally providing a return at the average of 3.2-5.5%.

 

Asia Plus Securities stated normally days before officially being listed in MSCI Global Standard, the stock tends to edge higher between 4% and 5%, while trading higher 2-3% for stocks added to Small Cap Indexes.

 

Recommended Vaccine Play as investment theme, raising TISCO and VGI as top picks, while seeing a positive fund inflow trend for Thai stock market, which will be good for the index in the mid to long term. The recent announcement of a coronavirus vaccine trial of more than 90% effective was a long-await good news for Thai market. As of Nov 10, foerign investors net buy Thai stock for 18 billion baht.