MSCI and FTSE on August 9 announced the reduction in Intouch Holdings Public Company Limited (INTUCH)’s weight due to weaker liquidity following the decline in free-float, which will take effect at today’s (August 10) market close.
Capital Nomura Securities (CNS) anticipates more than 3.94 billion baht in capital flight (2,315 million baht from MSCI and 1,703 million baht from FTSE). CNS maintains a “BUY” recommendation on INTUCH with a target price of 70 baht, citing a good opportunity for investors to accumulate during a share price drop and a high dividend yield of 3.5-3.8% despite the weightage being cut.
Asia Plus Securities (ASPS) said that MSCI may cut investment in Thai stocks. Since Thai stocks have significantly underperformed global markets in the past 1-2 months, they weigh less in MSCI calculation. As a result, MCSI, as well as FTSE, which recently revised its criteria for market assessment, may weigh down investment in Thai stocks.
However, ASPA does not anticipate any additional stocks being added to the MSCI indices during the upcoming MSCI rebalance.
The share price of INTUCH closed ฿2.25/share or 3.56% higher at ฿65.50/share, with a trading value of 677 million baht, in the morning session on Tuesday, August 10.