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LS Electric |
[Alpha Biz= Reporter Kim Sangjin] On the 2nd, LS Electric experienced a significant decline of over 9% on its first day of inclusion in the MSCI Korea Index. The stock closed at 151,700 won, down 9.11% (15,200 won) from the previous trading day. It opened at 166,000 won (-0.54%) but saw a widening drop as the day progressed.
MSCI had announced in its August review that LS Electric would be newly included in the MSCI Korea Index, with the effective date being the 2nd. While MSCI index inclusion is generally viewed as a positive event due to the expected inflow of passive funds and potential stock price increase, it often results in limited stock movement or even declines if the market has already priced in the expectations ahead of the inclusion.
Additionally, recent strong performance in the power equipment sector led to profit-taking, affecting other stocks in the sector. HD Hyundai Electric fell by 4.26%, and Hyosung Heavy Industries declined by 1.90%.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
