New Additions in August Regular Review
CJ CheilJedang, LG Innotek, and SKC Excluded
Doosan, Hyosung Heavy Industries, and LIG Nex1 have been newly added to the Morgan Stanley Capital International (MSCI) Korea Index constituents. In contrast, CJ CheilJedang, LG Innotek, and SKC have been excluded.
On August 7 (local time), global index provider MSCI announced the results of its August regular review, adjusting the constituents of the Korea Index accordingly. The index rebalancing (adjustment) will take place after the market closes on August 26.
The MSCI Index is one of the most influential stock indices in the world. Every year in February, May, August, and November, it adjusts its constituents based on market capitalization and free-float market capitalization. Inclusion in the index can attract passive (index-tracking) funds that follow the index, while exclusion may have a negative impact on supply and demand.
The number of domestic stocks in the MSCI Index, which reached 104 in August 2023, decreased to 92 in November last year. In February this year, due to the sluggish domestic stock market, 11 stocks were simultaneously excluded, shrinking the total to 81. In May, the number of inclusions and exclusions was two each, resulting in no net change.
The securities industry had expected that, given the Korean stock market's higher growth rate compared to global markets this year, the number of inclusions in the August regular review would far exceed the number of exclusions. However, as MSCI only added three new stocks and excluded three, the number of constituents in the MSCI Korea Index remains unchanged at 81.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
