Thu, Jun 23, 2011 - Page 11 News List

MSCI holds off upgrading Taiwan, S Korean bourses

STILL EMERGING:The Taiwan Stock Exchange Corp said it wasn’t surprised. The bourses were faulted on their full currency convertibility and investor identification systems

Bloomberg

An upgrade of the UAE and Qatar is likely to draw more investors as fund managers buy their shares to mirror MSCI’s indexes. Israel’s benchmark TA-25 Index has surged 64 percent in US dollar terms since MSCI announced the country’s promotion to developed-market status on June 16, 2009, compared with a 36 percent gain for the MSCI World Index.

MSCI in its statement cited “stringent foreign ownership limits” such as limited availability of shares to foreign investors as remaining concerns for the countries.

“This point has been more strongly voiced for the Qatari market,” the index provider said.

Under existing UAE law, foreign companies must have nationals as their sponsors and are limited to a maximum 49 percent ownership of businesses, except in free zones. Qatar caps overseas ownership at 25 percent.

This story has been viewed 5379 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top