Nomura Securities has released a list of Thai stocks to be “in-out” based on the MSCI index calculation for the month of August. It is expected that KBANK is the only contender. There may be $171 million inflows, while BAM is at risk of falling out of the index.
Nomura Securities Public Company Limited (CNS) has revealed that it expects MSCI rebalance for the month of August 22, which MSCI will announce a new list of shares on August 11 and will have a rebalance on the 31st. Aug. 65
This time, in the part of MSCI Global Standard Index, it is expected that there are 2 countries in EM that will have new stocks as follows:
1) China, expects 8 new MSCI Global Standard Index stocks
These include GCL TECHNOLOGY HOLDINGS LTD (approximately $555 million), followed by TIANQI LITHIUM CORP-A, QINGHAI SALT LAKE INDUSTRY-A, BEIJING TONGRENTANG CO-A, SHANGHAI RURAL COMMERCIAL -A, PYLON TECHNOLOGIES CO LTD-A, ZANGGE TECHNOLOGIES CO LTD-A. CO LTD-A, YUNNAN YUNTIANHUA CO-A approximately $96-27 million each
2) Thailand expects new MSCI shares, namely KBANK, around US$171 million or not less than 6 billion baht (equivalent to 3 times the average daily turnover).
Expected issued shares: BAM -46 million (Accounting for sales force, approximately 8.8 times the average trading value)
Recommend speculative strategy KBANK (Target price 190 baht) and be cautious, BAM may lose weight before the actual announcement date 11 Aug. 65