MSCI freezes Turkey index changes, weighs downgrade

MSCI has immediately frozen certain changes to its Turkey equity indexes, including increases in foreign inclusion factors or share counts, additions to the investable market index, and moves to larger size segments. The decision follows investor concerns that suspected coordinated trading involving fund holdings at smaller listed companies is distorting free-float estimates and undermining market integrity. Turkish authorities have introduced rules to exclude some fund-held stakes from free-float calculations, but MSCI says it needs more time to assess whether the measures are consistently enforced and deliver reliable ownership disclosures. If sufficient progress is not evident by June 2027, MSCI may consult on downgrading Turkey from emerging-market status to frontier or standalone status.



