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Local bank shares may not ebb with Sea's rising tide

Singapore

A BIG question mark looms over how the inclusion of Nasdaq-listed Sea Ltd on a market index would finally weigh on the shares of Singapore banks - key components of this critical benchmark.

On March 10, MSCI said eligible foreign-listed shares would be included into its MSCI Singapore index over four phases starting May. These could include Sea, Maxeon Solar Tech, and Hong Kong-listed Razer.

There is uncertainty over Sea's eventual weightage in the revamped index, and its impact. On a market cap basis, Sea's inclusion should cause the most disruption, given that its free-float adjusted market cap of S$71.8 billion as at March 25 is 40 per cent larger than DBS, currently the largest component...

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