Hanwha System and Samyang Foods have been included in the Morgan Stanley Capital International (MSCI) Standard (large+mid-cap) index.
According to the financial investment industry on the 14th, MSCI conducted its regular review in May and made this decision. Hanwha System has seen its stock price rise by over 80% this year due to a strong defense sector, making it a likely candidate for inclusion in MSCI. Many also expected Samyang Foods to join MSCI, as its exports continue to increase and its stock price has hit record highs.
Ecopro and NCSOFT were excluded from the index. Ecopro's stock price has fallen by about 18% this year due to difficulties in the electric vehicle market, experiencing a demand chasm. As a result, it appears to have failed to meet the MSCI liquidity market capitalization criteria. NCSOFT's stock price also dropped by about 17% this year, leading to its exclusion due to falling below the market capitalization standard.
The number of Korean stocks in the MSCI Standard index remained the same at 81. This is an improvement compared to the regular review in February when 11 stocks were suddenly excluded.
The MSCI Small Cap index included DearU, Hankuk Carbon, HD Hyundai Marine Engine, HDC, Hyundai AutoEver, and OliX Pharmaceuticals, in addition to the downgraded Ecopro and NCSOFT.
Excluded from the small-cap index are Cheryong Electric, COSMO Chemical, Duksan Techopia, Ecopro HN, FADU, HYUNDAI BIOSCIENCE, and others, apart from the upgraded Hanwha System and Samyang Foods.
The MSCI index is considered one of the most influential stock indices in the world. When included, it can attract additional funds due to the large scale of funds that track it. Conversely, when excluded from the index, tracking funds are likely to withdraw. MSCI changes the composition of index stocks based on market capitalization and liquidity market capitalization every year in February, May, August, and November.