What a Bummer! MSCI Indexes Say “NO” to Include Additional Thai Stock at This Time

A real bummer for two big Thai’s shares that were expected by analysts that they will be added to MSCI Index. These two shares were Krungthai Card Public Company Limited (KTC) and Gulf Energy Development Public Company Limited (GULF). Both shares have a large market capitalization, while KTC also entered SET50 recently.

 

MSCI Inc., a leading provider of research‐based indexes and analytics, announced the results of the August 2018 Quarterly Index Review for the MSCI Equity Indexes. Surprisingly, MSCI put more weight on Chinese shares, while indicated that they will implement the second step of the partial inclusion of China A shares in the MSCI China Index as well as relevant composite indexes such as the MSCI Emerging Market Index.

Existing China A share constituents will have their weights increased following the increase in the inclusion factor from 2.5% to 5% of their respective foreign inclusion factor (FIF) adjusted market capitalization. In addition, ten China A shares will be added as part of this Index Review at 5% of their FIF‐adjusted market capitalization, bringing the total China A shares included in the MSCI China Index to 236, representing 0.75% of the MSCI Emerging Markets Index.

There will be 13 additions to and no deletions from the MSCI China All Shares Index. The three largest additions by full company market capitalization to the MSCI China All Shares Index will be China Shenhua A, China United Network A and Hengli Petrochemical A. There will be no additions to and nine deletions from the MSCI China All Shares Small Cap Index.

 

MSCI China A Onshore Indexes: There will be five additions to and three deletions from the MSCI China A Onshore Index. The three largest additions to the MSCI China A Onshore Index by full company market capitalization will be ZTE Corporation A, China Enterprise A and Jiangsu Yangnong Chemical A. There will be three additions to and eight deletions from the MSCI China A Onshore Small Cap Index.

MSCI Global Standard Indexes: Eighteen securities will be added to and four securities will be deleted from the MSCI ACWI Index. The only addition in the MSCI World Index will be Showa Denko K.K (Japan).    The three largest additions by full company market capitalization in the MSCI Emerging Markets Index will be China Shenhua A (China), China United Network A (China) and Hengli Petrochemical A (China).   

 

Information Source: MSCI