INTUCH not added to the MSCI?

This news has local traders and brokers buzzing this morning regarding Shin Corp (ticker: Intuch) and how an “unclear nationality” of one of the major shareholders may cause the stock to be ineligible for the MSCI Index (see the statement below)

What’s the impact on the stock? Well a temporarily sharp sell off in the AM, as of 10.17am there’s been thb 3 bn traded on the stock 1/4 of today’s value traded thus far. But this just reminds us of when LH was delisted from the MSCI index a few years back and the stock dropped purely because of that, so its only fund flow, short term, no impact on the co’s fundamentals.

STANDARD ANNOUNCEMENTS – May 21, 2013 at 03:33 PM GMT
Announcement for May 21, 2013 at 03:33 PM GMTTHIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDICESUPDATE ON THE TREATMENT OF SHIN CORPORATION PCL IN THE MSCI THAILAND INDEXCOUNTRY CODE                TH
SECURITY NAME               SHIN CORP PCL
STANDARD                    NOT ADDED
LARGE CAP                   NOT ADDED
MID CAP                     -
ASIA APEX 50                -
TYPE OF EVENT               QUARTERLY INDEX REVIEW
EFFECTIVE DATE              03-JUN-2013

Re: Announcement sent on May 17, 2013

MSCI has clarified with the Stock Exchange of Thailand (SET) the
domestic/foreign classification of the major shareholders for Shin Corporation
PCL.

Following the clarification, the Foreign Inclusion Factor (FIF) of Shin
Corporation PCL will remain below 0.15 as part of the May 2013 Semi-Annual Index
Review. Consequently, as the free-float adjusted market capitalization of Shin
Corporation PCL is less than 1.8 times of the minimum free float-adjusted market
capitalization required for the MSCI Thailand Index, Shin Corporation PCL will
not be added to the MSCI Thailand Index as part of the May 2013 Semi-Annual
Index Review.

For further information on MSCI indices or MSCI data, visit our web site at
www.msci.com, or contact:

MSCI Global Client Service:
Americas Client Service: 1.888.588.4567 (toll free)/+ 1.212.804.3901
EMEA Client Service: + 44.20.7618.2222
Asia Pacific Client Service: + 852.2844.9333

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDICES

                                   End of announcement.
                                   Further announcements may occur as needed.

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