HD Hyundai Electric Co., alongside Alteogen Inc. and Enchem Co., is anticipated to join the Morgan Stanley Capital International (MSCI) Korea Index during the upcoming May rebalance, according to a report from Samsung Securities Co. This potential inclusion could enhance foreign investment and drive an uptick in share prices.

The likelihood of these three companies being added to the MSCI Korea Index stands at around 90%, based on current stock prices, says Samsung Securities analyst Kim Dong-young. MSCI rebalances its Korea Index several times each year, and companies are added or removed based on market capitalization metrics.

Inclusion in the index can lead to significant foreign buying interest. HD Hyundai Electric, known for its power transformers, is expected to attract substantial investment following its potential entry into the MSCI Korea Index. Samsung Securities projects the company will attract around 140 billion won ($130 million) after its addition.

HD Hyundai Electric, which is part of the world's largest shipbuilding group holding firm HD Hyundai Co., has been experiencing steady growth since its turnaround in 2020, reporting consecutive profits since then.

The company's positive trajectory contrasts with other changes expected in the index, such as the potential exclusion of Kakao Pay Corp. and Hanon Systems Corp. due to recent stock performance issues. The market shift indicates the dynamic nature of Korea's stock exchange and its ongoing evolution.

Source: kedglobal.com