Bloomberg News

MSCI Seeking Feedback on Israel’s Inclusion in Europe Index

June 21, 2012

MSCI Inc. is considering including Israeli stocks to its European index and is seeking feedback from investors, the New York-based index provider said.

MSCI reclassified Israel as a developed market from emerging-market status in 2010 and based on “participant feedback” didn’t include the MSCI Israel Index (MXIL) in the MSCI Europe Index, it said in a statement yesterday. Instead, it created the MSCI Europe + Middle East Index as a new regional developed market index.

Upgrades at MSCI could lead to the nation’s equities luring more of the investor assets that follow the provider’s gauges. The Tel-Aviv Stock Exchange’s Chief Executive Officer Ester Levanon said in May the bourse is seeking to move to the MSCI Europe index to boost trading volumes. An e-mailed message sent to the bourse seeking comment wasn’t immediately replied today.

“The addition of Israel to any significantly tracked MSCI index should be a market positive,” Saar Golan, the head of equities trading at Clal Finance Batucha Brokerage Ltd., said in an e-mail today. “Israel would be a minor component, but it would mean an inflow of funds into MSCI Israel stocks.”

The benchmark TA-25 Index (TA-25) has risen 26 percent since June 2009 when MSCI announced the upgrade to developed-market status. That compares with a 61 percent rally for the Nasdaq Composite Index. (CCMP)

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at

To contact the editor responsible for this story: Claudia Maedler at

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