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Overseas Listed Brazil Stocks To Be Eligible For Inclusion In MSCI Brazil Indices

BRAZIL
  • In an announcement late on Monday, MSCI said that shares of Brazilian companies listed on foreign exchanges would become eligible for inclusion in the MSCI Brazil indices, starting in August. According to Morgan Stanley, such a move could trigger $4.7bn of inflows into Brazilian stocks currently listed in the US.
  • In the Bloomberg article, Morgan Stanley is said to highlight four companies, Nu Holdings Ltd, StoneCo, XP Inc and PagSeguro Digital Ltd, that could benefit from this move. More generally, they note that this is a game changer for Brazilian equity markets, highlighting that Brazilian issuers in the US will benefit both from continued access to the US market as well as passive inflows from benchmarked funds.

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