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MSCI will add 42 securities and remove 121 securities from its widely followed MSCI ACWI index following its quarterly review, the index provider said on Tuesday, and the changes would be implemented as of market close on May 31.
MSCI carries out a quarterly review of the global stock markets so that its indexes promptly reflect the changes in the overall equity markets.
The three largest additions to the MSCI World index will be software firm and bitcoin buyer MicroStrategy, data storage company Pure Storage and mechanical and electrical construction firm Emcor Group.
India's Canara Bank, Indonesia's Chandra Asri Pacific and India's JSW Energy will be the three largest additions to the MSCI Emerging Markets index.
The three largest additions to the MSCI Frontier Markets Index will be Kazakhstan carrier Air Astana, Croatia's Koncar Distributivni I and Romania's Digi Communications.
New York-based MSCI said it will add six and delete 70 securities from the China A Onshore Index. The three largest additions to the index will be steel manufacturer CITIC Pacific Special Steel, energy firm CNOOC and forklift manufacturer Hangcha Group.
The company said that foreign listings will become eligible for the MSCI Sweden Indexes starting from the November quarterly index review as the market has met the foreign listing materiality requirements.
MSCI will also no longer apply the special treatment of Egypt and Kenya securities in its equity indexes. It will resume the implementation of index review changes for these securities starting this index review.
The changes have been made based on the feedback from market participants that liquidity in the Egyptian and Kenyan foreign exchange markets and the ability of foreign investors to repatriate capital have improved.
The special treatment for equities listed in Bangladesh in the MSCI indexes will continue to remain in place until further notice given the market accessibility issues.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber)