By Kwanwoo Jun
Ecopro Materials’ stock jumped after index provider MSCI added it to its Korea index, a benchmark global equity funds track closely.
Shares of the South Korean battery-precursor supplier climbed as much as 17% to 200,500 won early Tuesday, outperforming the benchmark Kospi’s 1.2% gain.
A stock inclusion in MSCI indexes usually leads to inflows from passive global funds tracking them closely.
Seoul-based Eugene Investment & Securities said in a note Tuesday that it expects Ecopro to attract KRW110 billion ($82.8 million), or about 40% of its daily average transaction, in fresh fund inflows from its MSCI inclusion.
Ecopro Materials’ shares have risen severalfold since listing in South Korea in November.
The MSCI said in a Feb. 12 review that it added two stocks–Ecopro Materials and Hanjin KAL–to its Korea index and removed five–F&F, Hotel Shilla, Hyundai Mipo Dockyard, JYP Entertainment and Pearlabyss.
The changes will take effect Feb. 29, it said.
Write to Kwanwoo Jun at [email protected]
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