'Kakem', 'Ecopro BM', and 'SKIET' Soared This Month, Expected to Be Included in MSCI Next Month
[Asia Economy Reporter Song Hwajeong] Kakao Games, EcoPro BM, and SK IE Technology, which showed remarkable strength amid this month's box range market, are expected to be newly included in the Morgan Stanley Capital International (MSCI) quarterly review scheduled for next month.
According to NH Investment & Securities on the 28th, MSCI will announce the results of the quarterly review on the 11th of next month (local time). Considering the estimated cutoff (market capitalization benchmark) of the MSCI Korea Index, the stocks likely to be newly included in the August quarterly review are EcoPro BM, SK IE Technology, and Kakao Games. Since the beginning of this month, EcoPro BM rose by 33.66%, Kakao Games by 66.96%, and SK IE Technology by 24.86%, respectively. As of the 26th, the 20-day average daily trading volume reached 112.4 billion KRW for EcoPro BM, 147.9 billion KRW for SK IE Technology, and 514.6 billion KRW for Kakao Games.
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NH Investment & Securities projected that if these three stocks are included in the index, their weights within the MSCI Emerging Markets (EM) Index would be 0.028% for EcoPro BM, 0.032% for SK IE Technology, and 0.025% for Kakao Games, with passive inflows estimated at 96.97 billion KRW, 111.43 billion KRW, and 85.18 billion KRW, respectively. Among them, EcoPro BM is considered to have the most distinct index effect. Researcher Nodonggil from Shinhan Financial Investment analyzed, "EcoPro BM has the highest ratio of fund inflow to 20-day trading volume at 86.2%," adding, "Kakao Games' index effect may be limited due to the recent surge in trading volume."
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