MSCI index rejig to draw billions to Australia, Taiwan and Korea stocks, hit Japan, Indonesia and India - Goldman

LONDON, May 13 (Reuters) - The latest rejig of MSCI's global equity indexes is expected to draw billions of dollars of investment money into Australian, Taiwanese and Korean markets, but trigger outflows from Japan, Indonesia and India, Goldman Sachs said on Wednesday.

• Goldman analysts predicted the changes announced on Tuesday could trigger respective "passive" inflows of $2.7 billion, $2.3 billion and $1.9 billion into Australian, Taiwanese and Korean indexes as exchange traded funds (ETFs) that aim to replicate MSCI indexes begin to buy newly added stocks.

• Meanwhile, MSCI's deletions of certain stocks are forecast to trigger outflows of around $2.1 billion from Japan, $1.6 billion from Indonesia and $870 million from India.

• On a sector basis, Asia Pacific's tech hardware & semiconductor benchmarks are expected to see $9.1 billion of inflows, metals and mining $3.2 billion and telecom services $820 million.

• Largest outflows are likely to be from capital goods, consumer retail and services as well as consumer staples at $2.6 billion, $2.5 billion and $2.4 billion respectively.

• Over the past five years, stocks added to MSCI indices or seen their Foreign Inclusion Factors (FIF) increased have tended to outperform those deleted or with reduced FIFs, Goldman's analysts added.

• This time around, announced additions in both developed markets and emerging markets have outperformed the firms that will be removed for the last 3–4 weeks.

• Jakarta's main stock index .JKSE dropped almost 2% on Wednesday to its lowest in more than a year after MSCI's cut six companies from its Indonesia index, including four of Indonesia's top 20 stocks by market cap - those stocks plunged between 7% and 15%.