Financial Times Stock Exchange (FTSE) Russel, London-based provider of stock indices, has newly added eight South Korean companies mostly in tech and bio-tech businesses to its global index composed of small, mid, and large cap stocks, a move that is expected to give a boost to these newcomers’ stocks.

According to multiple sources from the brokerage industry on Wednesday, FTSE, jointly owned by the Financial Times and the London Stock Exchange, has added eight new listed companies from Korea to its Global All Cap Index while kicking out two existing Korean companies during its bi-annual readjustment of indices for September.

The eight companies added are: KMW Inc., Ecopro BM Co., Lotte Tour Development Co., CHA Biotech Co., AfreecaTV Co., Dongsung Pharmaceutical Co., Hyundai Bioscience Co., and Yuyang DNU Co. These companies mostly engage in developing and producing telecommunications technologies, lithium-ion battery materials and pharmaceutical products.

Meanwhile, Caregen Co. and G-Smatt Global Co. were removed from the FTSE index during the adjustment.

The readjustment will be reflected starting Sept. 23 based on the closing prices on Sept. 20.

FTSE Global All Cap Index, a global stock index announced by FTSE International founded by the Financial Times and London Stock Exchange, tracks the largest amount of funds among other FTSE indices, estimated at $12.4 billion. The total amount it tracks is less than that of Morgan Stanley Capital International (MSCI) index but it still has a significant impact on individual stocks included in the index. The stocks in the FTSE Global All Cap Index often get a boost.

According to Hana Financial Investment’s analysis of nine readjustment cases, those stocks that newly joined the index between March 2017 and June this year jumped 8.5 percent on average from the date of their inclusion announcement to their actual trading dates. On the other hand, the shares that were removed from the index plunged 4.1 percent.

Most of the eight Korean companies that were newly added to the index, in fact, closed higher in the bourse from the previous day’s closing. Shares of Ecopro BM finished 5.15 percent higher at 59,200 won ($48.7) in the junior Kosdaq market on Wednesday, and Cha Biotech 5.2 percent higher at 14,150 won. Shares of AfreecaTV also closed 4.05 percent higher at 61,600 won.

By Chung Hee-young and Lee Eun-joo

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