MSCI ends special treatment for Egypt, Kenya in equity indexes
Updated 5/8/2024 8:06:00 AM
Arab Finance: Morgan Stanley Capital International (MSCI) has announced the end of special treatment for Egypt and Kenya in its equity indexes, as per an emailed press release.
Effective from the May 2024 Index Review, this decision marks the conclusion of special arrangements previously extended to these countries, with the final adjustments set to take effect consequently.
Originally introduced in response to specific market conditions, the special treatment given to the MSCI Egypt Indexes in May 2023 and the MSCI Kenya Indexes in August 2022 will be terminated.
MSCI cited notable improvements in liquidity within the Egyptian and Kenyan foreign exchange markets, along with enhanced capabilities for foreign investors to repatriate capital from these respective equity markets, as key factors underpinning this decision.
The May 2024 Index Review will witness the implementation of all pending index review changes, including alterations to the number of shares (NOS) and foreign inclusion factors (FIF) that were previously deferred as part of the special treatment.
These adjustments will encompass securities classified within Egypt and Kenya across various MSCI indexes, spanning the MSCI Factor, Thematic, ESG, and other pertinent derived indexes. Additionally, MSCI will resume regular corporate event implementations in these indexes, effective June 3rd.
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