3 July 12 15:05–MSCI Inc. is considering including Israeli stocks on its Europe Index, instead of the MSCI Europe + Middle East Index, which it created when it reclassified Israel from an emerging market to a developed market in 2010. The inclusion, if implemented, could give the Tel Aviv Stock Exchange (TASE) a shot in the arm in the form of capital inflows from European investment institutions.
Late last month, MSCI said that it was seeking feedback from investors for the proposed move. It said that it did not include the MSCI Israel Index (MXIL) in the MSCI Europe Index in 2010, based on participant feedback at the time.
TASE CEO Esther Levanon told “Globes”, “We recently told MSCI that Israel got a little lost since it was reclassified as a developed market. In addition to the global indices, there are regional indices. Because we’re not in Europe, the Europe + Middle Index was created, a decision that caused us to slip between the cracks.
“That is why we asked MSCI to review the situation and consider including us in the Europe Index. They said that they’d do it, and we saw that they mentioned the matter in their annual statement. We believe that the change will take place at index updates at the end of the year.”…Read More>>