MSCI Move May Trigger $4.7 Billion of Inflows Into US-Listed Stocks by Brazil Firms
- Foreign listings will become eligible to join Brazil indexes
- Decision seen as ‘game changer’, according to Morgan Stanley
Monitors display Banco Bradesco SA, Vale SA, Petroleo Brasileiro SA, and Pagseguro Digital Ltd. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Nov. 26, 2018.
Photographer: Jordan Sirek/BloombergThis article is for subscribers only.
Shares of Brazilian companies listed on foreign exchanges could see inflows worth billions of dollars due to an MSCI Inc. decision announced late Monday.
The index provider said foreign listings would become eligible for the MSCI Brazil Indexes starting in August. Such a move could result in $4.7 billion of inflows for Nu Holdings Ltd., StoneCo, XP Inc. and PagSeguro Digital Ltd., Morgan Stanley strategists led by Nikolaj Lippmann wrote in a note to clients. The four companies went public in the US in the past six years.