Amorepacific (090430) Group, which owns part of South Korea’s largest cosmetics maker, and Marcopolo SA (POMO4), a Brazilian bus manufacturer, will be added to MSCI Inc. (MSCI)’s emerging markets index following a quarterly review.
PetroVietnam Gas JSC (GAS), a unit of Vietnam Oil & Gas Group, will be included in the MSCI Frontier Markets Index, the New York-based index provider said in a statement yesterday. The changes will be made at the close on Aug. 31.
Amendments to indexes can alter share prices as passively managed funds buy and sell stocks to mirror the benchmark gauges. About $7 trillion of funds are benchmarked against MSCI indexes globally, according to the company’s website.
“The addition to the MSCI indexes will benefit the stocks as some exchange-traded funds tracking the indexes will add them to their portfolio,” Jingyi Li, an analyst at Harding Loevner LP, which manages about $19 billion in global asset including emerging market equities, said by phone from Bridgewater, New Jersey yesterday.
MSCI will add Mellanox Technologies Ltd. (MLNX), an Israeli maker of technology used to transfer and store data, to its MSCI World Index, along with Camden Property Trust (CPT), a real estate investment pool based in Houston, Texas, and Realty Income Corp. (O), a commercial properties management firm in Escondido, California.
Telus Corp. (T), Alpha Natural Resources Inc. (ANR), NII Holdings Inc. (NIHD) and Elbit Systems Ltd. (ESLT) will be removed from the World index. Dongyue Group (189), Lonking Holdings Ltd. (3339), STX Pan Ocean Co. (028670) and HRT Participacoes em Petroleo SA will be cut from the emerging market index.
Shares of Amorepacific, which owns 35 percent of Amorepacific Corp., gained 0.8 percent to a record in Seoul today. PetroVietnam Gas advanced 1.8 percent, the most in a month. Marcopolo has climbed 55 percent this year as Brazil’s payroll tax reduction eased rising labor costs.
Mellanox, which has more than tripled this year, slipped 0.1 percent at 3:39 p.m. in Tel Aviv. Elbit Systems, an Israeli maker of defense systems, dropped 1.5 percent to the lowest level since 2006.
The MSCI Emerging Markets (MXEF) Index, a gauge of shares in 21 developing nations, slid 0.1 percent. The measure has increased 6.3 percent this year, while the MSCI World gauge of developed countries advanced 8.2 percent.
MSCI makes decisions on membership and weightings based on a company’s market value, the average number of shares traded and the free float, or the percentage of shares available to investors, the index provider said. It also takes into account the representation of a company’s industry group and its country.
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