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Grab in 'good position' to be included in key market indices; disruption from inclusion minimal for large caps: Citi

Felicia Tan
Felicia Tan1/19/2022 5:16 PM GMT+08  • 3 min read
Grab in 'good position' to be included in key market indices; disruption from inclusion minimal for large caps: Citi
The brokerage has kept Singtel, CDG, Genting and Wilmar as its Singapore picks for reflation and re-opening themes.
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Citi Research analyst Arthur Pineda says Grab Holdings’ recent listing allows it potential to be included in key market indices. The tech group’s listing places it amongst the top 10 largest Singapore-headquartered stocks based on market capitalisation, at US$23 billion ($31.03 billion) as at the time of writing on Jan 18.

“This places the company in good footing to be included in key market indices such as MSCI Singapore which in turn raises potential concern on asset re-allocations. Weightings into Grab will need to be funded by a reduction in weightings for other legacy index names,” writes Pineda.

That said, the inclusion of Grab into such indices will likely see a minimal disruption for the existing large caps that’re already in the index, unlike the inclusion of Sea Limited in September 2021.

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