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Bloomberg
Four Singaporean blue-chip stocks lost a combined market capitalisation of $613 million amid record volumes after MSCI Inc. deleted them from its benchmark for the city-state’s largest stocks.
Two of the four shares excluded from the MSCI Singapore Index — Singapore Press Holdings Ltd. and Sembcorp Industries Ltd. — became over-sold on a technical indicator, while ComfortDelGro Corp. and SATS Ltd. traded close to that territory.
Stock price declines in the companies excluded by MSCI were exacerbated as those firms face a “direct hit from the pandemic,†Justin Tang, head of Asian research at United First Partners, an investment and advisory group that specializes in special situations. MSCI announced the additions and deletions from its global standard indexes under its semi-annual index review on May 12.
Shares in Singapore Press slumped to their lowest closing level since 1992, while those in Sembcorp Industries fell to their lowest since 2004 and ComfortDelGro ended at a five-week low.