Kakao Games, along with SK Innovation’s battery materials affiliate, SKIET, are also potential candidates to join the MSCI Korea Index, according to analysts.
Meanwhile, SK Telecom’s (SKT) weighting on the index is set to be cut by 25 percent, following a treasury stock cancellation in May and a resulting rise in the proportion of foreign ownership. SKT earlier cancelled almost the entirety of its treasury shares, worth 2.6 trillion won.
Analysts projected the telecom firm’s stock to see short-term adjustments, accordingly.
“We project that the rebalancing sell-off will reach 916.4 billion won,” Yuanta Securities analyst Choi Nam-kon said. “If the 900 billion-won sell-off materializes, a short-term stock price adjustment will be inevitable.”
The MSCI Korea Index measures the performance of the large- and mid-cap segments of the local market. The index is reviewed quarterly ― in February, May, August and November ― with the objective of reflecting change in the underlying equity markets. During the May and November semi-annual index reviews, the index is rebalanced, and the large- and mid-capitalization cutoff points are recalculated.