Another 20 Thai stocks to be added to MSCI
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The Stock Exchange of Thailand (SET) has announced that US-based MSCI, the global index provider, will add 20 Thai stocks as components of its MSCI Global Small Cap Indices, effective from June 1.
The stocks are those of Ananda Development, Bangkok Metro, Energy Absolute, Eastern Water Resources Development and Management, GMM Grammy, Gunkul Engineering, Jaymart, Krungthai Card, Malee Sampran, Natural Park, Officemate, Oishi Group, Samart Telcoms, SPCG, Thai Factory Development, Thai Reinsurance, The Union Mosaic Industry, Univentures, VGI Global Media, and WHA.
The Thai bourse has more stocks being added to MSCI Global Small Cap Indices than any other Asean exchange in this round.
Chanitr Charnchainarong, SET executive vice president and Market for Alternative Investment (MAI) president, yesterday said that 19 SET stocks and one from the MAI were being added to the MSCI Global Small Cap Indices, with a combined market capitalisation of Bt403 billion as of May 15.
Meanwhile, three Thai stocks were being removed from this set of indices, as they had grown too big for to qualify.
“Seven of the newly added stocks have been listed on the Thai bourse through initial public offering in the last three years, showing the potential of Thai stocks to be qualified for global stock indices.
“We expect more interesting IPO stocks to be continuously listed on the Thai bourse and potentially be added to MSCI Global Small Cap Indices, making the Thai bourse more attractive for investors,” he said.
The seven companies listed in the SET in the past three years were Ananda Development, Energy Absolute, Gunkul Engineering, Officemate, SPCG (as a backdoor listing), VGI Global Media and WHA, with 44 per cent of the total market capitalisation of the 20 stocks added to MSCI Global Small Cap Indices in this round.
“Most stocks which were removed from the indices reached a market capitalisation exceeding that used in selecting the MSCI Global Small Cap Indices. If their market capitalisation and liquidity keep growing, they might be added to the MSCI Global Standard Indices, like Home Product Centre, Minor International and True,” Chanitr added.
Stocks added to global stock indices normally have higher market capitalisations and trading volumes than those not included, in alignment with company performance and increased investor interest.
