Morgan Stanley is considering adjusting the policy of including stocks in its indexes

Beltone Financial, listed on the Egyptian Stock Exchange, said that Morgan Stanley Capital International’s proposal to amend the policy of listing stocks with strong price rises in its indices is positive, and aims to balance between postponing the listing of stocks known for their exceptional price rises and maintaining that Morgan Stanley indices reflect changes in time. the appropriate.

Beltone added in a report today, Sunday, that “Al” has seen a copy of it, that it believes that using the return difference between stocks and countries will remove any possible bias for the country or a specific sector and allow a better comparison between stocks.

Morgan Stanley Capital International has begun consulting on a proposal to implement an additional audit of all possible stocks included in its indexes, including stocks in indices for companies with small capital that are likely to be upgraded to the benchmark index, for standard indices that show strong price increases during the specified period prior to reviewing indices Morgan Stanley.

The proposed mechanism stipulates that the shares likely to be included in the standard indices are examined based on specific levels of return, and the shares that are examined will be considered for inclusion in the index in the next periodic review.

According to the Morgan Stanley mechanism that it applies to most initial public offerings, the primary objective of this proposal is to provide an adequate period of time to allow for the detection of any potential price stability for securities that exhibit exceptional price spikes and to reduce the chances of potential price fluctuations.

Morgan Stanley Capital International will receive the investment community’s comments on this proposal until March 31, 2021, and the results of the consultations will be announced before or on April 16, 2021.

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