Korea Gains and Loses Heft in Market Gauges

Korea's weighting in Morgan Stanley Capital International's Emerging Markets Free Index has risen to 14.8 percent from 11.5 percent. But its weighting in the MSCI All Country World Index has dropped to 0.46 percent from 0.58 percent.

MSCI published on Saturday, Geneva time, a provisional index series, in which 17 Korean companies were newly included.

The 17 companies were: Korea Telecom Freetel, whose weighting in Korea stood at 3.6 percent, preferred shares of Samsung Electronics Co. (1.9 percent), Kia Motors Corp. (1.6 percent), Hyundai Heavy Industries Co. (0.9 percent), Good Morning Securities Co. (0.6 percent), Kookmin Credit Card Co., S-Oil Corp. (0.5 percent), Humax (0.4 percent), NCSoft (0.3 percent), Hankuk Electric Glass Co. (0.3 percent), LG Engineering & Construction Co. (0.2 percent), Pacific (0.2 percent), Yuhan Corp. (0.2 percent), Nongshim (0.2 percent), Poongsan Corp. (0.2 percent), Asiana Airlines (0.1 percent), and Hanjin Shipping Co. (0.1 percent).

Samsung Electronics saw its weighting in Korea climb to 26.4 percent from 23.9 percent, while Pohang Iron & Steel Co.'s weighting went up to 9.7 percent to 7.8 percent. The weighting of Shinhan Bank also rose to 2.8 percent to 2.4 percent.

In contrast, Korea Electric Power Corp. suffered a 5.9 percentage point cut in its weighting, and SK Telecom saw a 5.7 percentage point drop. Korea Telecom Corp.'s weighting was also reduced but is expected to be readjusted after its planned issuance of global depository receipts.

Nine corporations were dropped from the index: Daesang, Hyundai Engineering & Construction, Isu Chemical, Korea Express, Kukdo Chemical, LG Insurance Co., Namhae Chemical Corp., Samyang and Ssangyong Cement Industrial Co.

by Rah Hyeon-chul