HD Hyndai Marine Solution and APR were added to the Morgan Stanley Capital International (MSCI) Korea Index.
On the 5th (local time), MSCI said that in the November regular review of the Korea Index, HD Hyndai Marine Solution and APR were included and Orion was removed. As a result, the number of constituents increased to 82 from 81. Rebalancing will take place after the market closes on the 24th.
The MSCI Korea Index is a key benchmark for global investors. When a stock is newly added, index-tracking funds can flow in, and when it is removed, outflows can occur.
According to the securities industry, this adjustment is estimated to bring a net inflow of about 300 billion won in global passive funds. Yuanta Securities Korea projected buying of about 98.8 billion won and 172.7 billion won into HD Hyndai Marine Solution and APR, respectively. It analyzed that about 60.9 billion won would flow out of Orion.
In February, amid weakness in the domestic stock market, 11 stocks were removed in a batch without any additions, and in May, the numbers of removals and additions were the same at two each. In August, three were added and three were removed.
Kidong-yeong of Samsung Securities said, "HD Hyndai Marine Solution had met the inclusion criteria for some time," and noted, "APR is the second-largest by market capitalization among domestic stocks not yet in MSCI, so a substitute inclusion was likely due to Orion's removal."
MSCI regularly adjusts index constituents in Feb., May, Aug. and Nov. In Feb. this year, 11 stocks were removed en masse with no additions due to the sluggish domestic stock market, and in May and Aug., there were two and three additions and removals, respectively.