One of the reasons Singapore’s free-float market cap fell more than the MSCI GIMI is because of greater liquidity and interest elsewhere in Asia and globally. Within Asia, only India had net additions. However, free-float market-cap levels rose in places like Japan and Taiwan. China had 56 deletions and 10 additions.
MSCI Global Investable Market Indexes (GIMI) are indexes weighted by market capitalisation. According to MSCI, the weight of index constituents is determined as a ratio of its free float-adjusted market cap relative to the total free float-adjusted market cap of all index constituents of the index. Therefore, the weight of a country in a composite index is the sum of the weight of all index constituents that are classified in that particular MSCI Country Index.
As part of the May 2024 Index Review, which used April 19 stock prices, the weight of the MSCI Singapore Index in the MSCI World Index is 0.34%, compared to 0.36% before the rebalancing. The five stocks that were dropped on May 31 were City Developments, Mapletree Pan Asia Commercial Trust (SGX:N2IU
) , Mapletree Logistics Trust (SGX:M44U) , Seatrium and Jardine Cycle & Carriage (SGX:C07) . They were dropped as they were the ones with the lowest free-float market caps. If the Singapore market remains moribund, the next stock on the list that could be dropped is Sembcorp Industries (SGX:U96) .
