Four Stocks Including Ecopro and JYP Added to MSCI Index "Expecting Capital Inflow"
Revealed in August Regular Review, Emart and CJ Excluded
Ecopro Expected to Attract Over 1 Trillion Won
JYP Seen as the Biggest 'Beneficiary'
Four stocks, including Ecopro, Hanmi Semiconductor, Hanwha Ocean, and JYP Ent., have been newly included in the MSCI. Global stock index provider MSCI announced this on the 10th (local time) through its August regular review. Two stocks, CJ and Emart, will be excluded from the MSCI Korea Index. The total number of Korean stocks increased from 102 to 104.
The MSCI index is a global stock index published by the American investment bank Morgan Stanley. It undergoes regular changes four times a year (February, May, August, November). Rebalancing due to index changes is conducted at the closing price on the 31st. The effective date is from the 1st of the following month. Geumyang, which was expected to be included in the index, was ultimately not included.
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MSCI selects index constituent stocks based on total market capitalization and free float market capitalization. Once included in the index, it is expected to attract inflows from global passive (index-tracking) funds. In the past, stocks like Kakao Pay and SK IE Technology saw their stock prices rise after being included in the MSCI Korea Index. Securities firms expect that at least 1 trillion KRW will flow in with Ecopro’s inclusion in the MSCI this time. Some also predict that JYP will be the biggest beneficiary of this index inclusion.
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