Analyst: Israel to benefit from new MSCI standing
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27.01.10, 12:56
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Financial News
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Prof. Leo Leiderman, chief economist at Bank Hapoalim, estimated Wednesday that Israel, which is slated to be included in the MSCI Developed Markets Index by May 2010, can only benefit from the move, despite the fact that the Israeli market stands to be ranked 20 out of 24.
Israel is currently ranked ninth out of 22 in MSCI's Emerging Markets Index. “Upgrading Israel's status comes in near-perfect timing,” Leiderman told Calcalist. “The amount of potential investments in developed markets is far greater than in emerging markets... Israeli companies stand to see larger capital influx.”
Nevertheless, Israel's lower standing in the new index might deter some investors, but according to Leiderman, investors are more likely to compare the Israeli market to others with similar standing on the index, and therefor “a potential investor isn't going to ponder whether to invest with an Israeli company or an American one, but whether to invest with an Israeli company or one of equal index standing.”
A major factor in Israel's favor, he added, is the fact that the Israeli market has weathered the financial crisis better than others.
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