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MSCI index rejig to draw billions to Australia, Taiwan and Korea stocks, hit Japan, Indonesia and India - Goldman
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MSCI index rejig to draw billions to Australia, Taiwan and Korea stocks, hit Japan, Indonesia and India - Goldman
May 13, 2026 2:25 AM

LONDON, May 13 (Reuters) - The latest rejig of MSCI's

global equity indexes is expected to draw billions of dollars of

investment money into Australian, Taiwanese and Korean markets,

but trigger outflows from Japan, Indonesia and India, Goldman

Sachs ( GS ) said on Wednesday.

* Goldman analysts predicted the changes announced on

Tuesday could trigger respective "passive" inflows of $2.7

billion, $2.3 billion and $1.9 billion into Australian,

Taiwanese and Korean indexes as exchange traded funds (ETFs)

that aim to replicate MSCI indexes begin to buy newly added

stocks.

* Meanwhile, MSCI's deletions of certain stocks are forecast

to trigger outflows of around $2.1 billion from Japan, $1.6

billion from Indonesia and $870 million from India.

* On a sector basis, Asia Pacific's tech hardware &

semiconductor benchmarks are expected to see $9.1 billion of

inflows, metals and mining $3.2 billion and telecom services

$820 million.

* Largest outflows are likely to be from capital goods,

consumer retail and services as well as consumer staples at $2.6

billion, $2.5 billion and $2.4 billion respectively.

* Over the past five years, stocks added to MSCI indices or

seen their Foreign Inclusion Factors (FIF) increased have tended

to outperform those deleted or with reduced FIFs, Goldman's

analysts added.

* This time around, announced additions in both developed

markets and emerging markets have outperformed the firms that

will be removed for the last 3-4 weeks.

* Jakarta's main stock index .JKSE dropped almost 2% on

Wednesday to its lowest in more than a year after MSCI's cut six

companies from its Indonesia index, including four of

Indonesia's top 20 stocks by market cap - those stocks plunged

between 7% and 15%.

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