Korea Zinc shares slide over MSCI index exclusion after rights issue

Korea Zinc shares fell sharply Tuesday after its exclusion from the Morgan Stanley Capital International (MSCI) index was announced a day earlier. The removal, set to take effect next Monday, followed the zinc smelting firm’s latest third-party share issuance to finance its smelter project in Tennessee. According to the Korea Exchange, the stock slid 8.8 percent to 1.19 million won ($825) at the close. Shares opened at 1.31 million won and initially climbed to 1.327 million won, but soon reversed course and widened losses as the session progressed. Meanwhile, the KOSPI gained 67.96 points, or 1.52 percent, to close at 4,525.48. Selling pressure was led by foreign brokerages, with Merrill Lynch and Citigroup ranking among the top sellers. The sell-off followed MSCI’s announcement a day earlier that the zinc smelting company would be excluded. The index provider said Korea Zinc failed to meet free-float and free-float-adjusted market capitalization requirements after conducting a third-party share issuance. On Dec. 15, Korea Zinc announced plans to invest about 11 trillion won in partneWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times