MSCI, the New York-based index provider, is increasing its investment weight on Thailand by adding two Thai stocks to its global indices and 15 to its small capitalisation indices, effective Nov 27.
Charamporn Jotikasthira, president of the Stock Exchange of Thailand (SET), said the skytrain operator BTS Group Holdings Plc (BTS) and TMB Bank (TMB) will be added as components of MSCI Global Standard Indices.
Both stocks have a combined market capitalisation of 225 billion baht.
The 15 new stocks on the MSCI Global Small Cap Indices are Asia Plus Securities Plc (ASP), Chularat Hospital Plc (CHG), CK Power Plc (CKP), Country Group Development Plc (CGD), Diamond Building Products Plc (DRT), DSG International (Thailand) Plc (DSGT), Erawan Group Plc (ERW), KCE Electronics Plc (KCE), MBK Plc (MBK), MC Group Plc (MC), MK Restaurant Plc (M), Mono Technology Plc (MONO), Nok Airlines Plc (NOK), RS Plc (RS) and Thai Union Frozen Products Plc (TUF).
The 15 stocks have a combined market capitalisation of 261 billion baht.
Thirteen of them are listed on the SET and the other two on the Market for Alternative Investment.
However, two Thai stocks will be removed from the MSCI Global Small Cap Indices.
Stocks added to global stock indices normally have higher market capitalisations and higher trading volumes than those not included in the indices.
"Since November 2010, the number of Thai stocks as components of the MSCI Global Standard Indices have continuously increased, reflecting the larger size and higher trading liquidity of Thai listed companies. This can help to attract foreign investors to boost their investment weighting in the Thai stock market," he said.
Starting from Nov 27, a total of 30 Thai stocks will be components of the MSCI Global Standard Indices.
In addition to BTS and TMB, one each from Malaysia and the Philippines will be added.
Of 37 net added stocks in the MSCI Small Cap Indices, nine will be from Singapore, eight from Malaysia, five from Indonesia, two from the Philippines and 13 from Thailand.