Doosan, Hyosung Heavy Industries, and LIG Nex1 have been added to the Standard (large and mid-cap) index constituents of Morgan Stanley Capital International (MSCI).
According to the financial investment industry on the 8th, MSCI noted this through its August regular review. Both Doosan and Hyosung Heavy Industries, and LIG Nex1 have been regarded as potential candidates for inclusion, given that their stock prices have sharply risen since the end of April. (☞ '10 trillion club' LIG Nex1, Hyosung Heavy Industries, Doosan expected to be included in MSCI index)
Hyosung Heavy Industries has soared more than 200% this year, becoming a 'premium stock' (a stock priced over 1 million won per share). The boom in power equipment has driven up its stock price. LIG Nex1, which has benefited from the defense stock frenzy, and Doosan with significant expectations for its copper-clad laminate (CCL) business, have seen respective stock price increases of 137% and 129% this year.
Conversely, CJ CheilJedang, LG Innotek, and SKC have been removed from the index constituents. Although CJ CheilJedang and LG Innotek saw slight stock price increases this year, they were interpreted to have been excluded due to the rising benchmark of the standard index constituents.
The number of Korean stocks in the MSCI standard index remains unchanged at 81, following the counts from February and May.
In the MSCI small-cap index, 17 new stocks have been added, excluding the three stocks that were removed from the standard index. These include BHI, d'Alba Global, D&D Pharmatech, Doosan Robotics, GI Innovation, Harim Holdings, Hyundai G.F Holdings, LS Marine Solution, Lotte Tour Development, MNC Solution, Kakao Pay, ROBOTIS, S&S Tech, SNT Dynamics, Tae Kwang Corporation, Tongyang, and TONGYANG Life Insurance.
Additionally, three stocks were removed from the small-cap index, excluding the three stocks that were added to the standard index. These include HLB Therapeutics, Kakao Pay, and Miwon Commercial.
The rebalancing resulting from this regular change will take effect based on the closing prices on the 27th, becoming effective the following day.
The MSCI index is considered one of the most influential stock indices in the world. Due to its large followings, one can expect additional inflows when included in the index. Conversely, when removed from the index, a corresponding amount of following funds also exits. MSCI evaluates and adjusts the index constituents based on market capitalization and free float every year in February, May, August, and November.