UBS From the Ground - MSCI Semi Annual Rebalancing

MSCI semi-annual rebalancing was announced last night and below is the quick summary of the changest:

- Gudang Garam (GGRM) goes from a zero weighting to a 100% weighting. This makes GGRM one of the three largest additions to the MSCI Emerging Markets Index. GGRM was the only top 20 Indonesian stock not in the MSCI index. We'll separately send a note with a summary of everything that you need in order to take a view on GGRM. GGRM is the stock most impacted: This change should be very share price positive.

- Semen Gresik (SMGR) doubles its weighting due to an increase in free float (following the recent placement of stock. This change should be significantly share price positive for SMGR.

- Adaro (ADRO) has increased its weighting slightly as a result of a free float increase. Mildly positive.

- INCO (INCO) has seen a slight increase in free float. Barely positive.

- Three banks (BDMN, BMRI, BBRI) have seen an increase in the no. of shares calculation. Barely positive.

- Lippo Karawaci (LPKR) is removed from the MSCI index. If LPKR was widely held, it would be share price negative.

- Contrary to expectations, BUMI has not seen its weight reduced. To the extent that some were expecting its weight to be reduced, this could be considered positive.