FTSE Raises Weight on Thai Market, Analyst Expects Massive Speculation on OR-SCGP-CBG

FTSE Rebalance will raise the Thai stock market’s weight by 0.01% to 0.59%, effective at the closing on June 18, 2021, with an estimated inflow of 2 billion baht. Analysts stated that Passive Fund companies are expected to accumulate OR, SCGP, CBG and OSP after the addition in FTSE Rebalance. Meanwhile, KEX, NRF and RT will be included in the Small and Micro Cap Indexes.

Capital Nomura Securities (CNS) unveiled that the FTSE Rebalance by FTSE All World set to increase its weight on Thai stocks by 0.01% to 0.59%. Following the FTSE rebalancing, the Thai market is expected to receive around 66.8 million dollars or 2 billion baht in inflows. Passive Fund companies will begin accumulating the stocks upon the Rebalance’s effective date of June 18, 2021.

PTT Oil and Retail Business Public Company Limited (OR) and SCG Packaging Public Company Limited (SCGP) will be included in the FTSE All World Index in the upcoming rebalance, at the same time, no stocks will be delisted.

Additionally, FSTE will increase its weight on Carabao Group Public Company Limited (CBG) and Osotspa Public Company Limited (OSP). After the balancing, the two corporations are expected to get approximately 11 million baht dollars or 330 million baht and 8 million baht dollars or 240 million baht, respectively.

On the other hand, FTSE intends to reduce its weighting in Bangkok Bank Public Company Limited (BBL-R), PTT Public Company Limited (PTT), The Siam Cement Public Company Limited (SCC), CP All Public Company Limited (CPALL), Airports of Thailand Public Company Limited (AOT), The Siam Commercial Bank Public Company Limited (SCB), and Kasikornbank Public Company Limited (Kasikornbank) (KBANK-F). As a result, each of the aforementioned stocks is likely to have capital outflows of approximately -13 to -5 million dollars or -390 million baht to -150 million baht.

Meanwhile, the FTSE Small Cap Index is anticipated to add Kerry Express (Thailand) Public Company Limited (KEX). Thai Airways International Public Company Limited (THAI) will be excluded from the index in the meantime.

In addition ,FTSE Micro Cap’s next index rebalance will include JR, NEX, NRF, RT, SA, and SO.