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Photo courtesy of Samsung Bioepis |
[Alpha Biz= Kim Jisun] Samsung Epis Holdings and ABL Bio are being mentioned as potential candidates for inclusion in the MSCI Korea Index, raising expectations that the companies could gain greater recognition among global investors.
According to industry sources on Friday, both companies are under consideration ahead of MSCI’s regular index review scheduled for this month. MSCI updates the constituents of its Korea Index four times a year—in February, May, August, and November—based on factors such as market capitalization and free-float adjusted market value.
The pharmaceutical and biotech sector is particularly focused on Samsung Epis Holdings, which was spun off from Samsung Biologics in November last year. Following the split, Samsung Epis Holdings experienced share price weakness amid outflows of passive funds tracking major indices. As of the previous trading day, foreign ownership stood at 5.97%, significantly lower than Samsung Biologics’ 12.66%. Inclusion in the MSCI Korea Index could attract foreign passive inflows and help reduce stock price volatility.
ABL Bio has also been viewed as a strong candidate for MSCI inclusion until late last year. However, sentiment has weakened after reports that its Parkinson’s disease drug candidate ABL301, licensed out to Sanofi, was deprioritized in development. The news triggered a sharp share price decline late last month, wiping out more than KRW 2 trillion in market capitalization, with the stock yet to recover. Foreign ownership has also fallen from 14.11% on May 29 to 11.98% as of June 6.
Market watchers say MSCI index inclusion would be a key milestone for both companies, potentially boosting overseas investor interest and supporting future global fundraising efforts.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
