"Hyundai Rotem", Newly Included in MSCI Korea Index… 7 Stocks Excluded

[KOREA FINANCIAL TIMES, Jeong Suneun] Hyundai Rotem was newly included in the Morgan Stanley Capital International (MSCI) Korea Index.

Seven stocks, including Cosmo AM&T, Hanwha Solutions, Hyundai Construction, Hyundai Steel, Kumyang, KT, and Celltrion Pharm, were excluded.

MSCI, a global stock index calculation company, announced on the 7th (Korean time) that it will adjust the stocks in the Korea Index in this way in the November quarterly review.

The number of stocks included in Korea’s MSCI Standard Index will be reduced to 92.

The index effective date for this regular change is November 26, and passive funds are scheduled to rebalance (asset readjustment) around the closing price on November 25.


MSCI conducts regular changes four times a year, in February, May, August, and November. It selects stocks to be included in the index based on total market capitalization and free float market capitalization. Once included in the index, we can expect an inflow of global passive funds that track the index.

With this change, the weight of the Korean market in the MSCI EM (emerging market) index will decrease by 0.14%p. Its weight in the EM index will be 9.83%, below 10%.

Kang Song-cheol, a researcher at Eugene Investment & Securities, said, "We estimate passive purchase demand due to Hyundai Rotem's inclusion in the index to be KRW 257 billion (2.4x the average daily trading volume)."

Jeong Suneun (bravebambi@fntimes.com)