MSCI Brazil rebalancing: Potential additions & deletions

Research evidence excerpt

MSCI Brazil rebalancing: Potential additions & deletions

Idea

July 30, 2026 08:55 PM GMT

Morgan Stanley C.T.V.M. S.A.+MLatAm Equity Strategy | North America Julia M Leao Nogueira

Equity Strategist

MSCI Brazil rebalancing: Julia.Nogueira@morganstanley.comMorgan Stanley México, Casa de Bolsa, S.A. de C.V.+ +55 11 3048-6046

Nikolaj Lippmann

Equity StrategistPotential additions & deletions Nikolaj.Lippmann@morganstanley.com +1 212 761-2463

MSCI will rebalance its equity indices on September 1st. Exhibit 1 : We highlight STNE as a higher

However, the company is expected to release a preview on conviction deletion, and MBRF and AUGO as

August 12th. In our baseline scenario, we forecast no additions to potential deletions in case their free float

and one deletion (STNE) from MSCI Brazil. figures are revised down

Current weight Potential Trading impact Deletion

Ticker Brazil LatAm EM Outflow (USDm) ADTV (USDm) Days (ADTV) Conviction

STNE US 0.44% 0.26% 0.02% -180 64.0 -2.8 Medium/High

MBRF3 BZ 0.40% 0.24% 0.02% -163 28.2 -5.8 Low

AUGO US 0.38% 0.23% 0.02% -158 72.1 -2.2 LowKey Takeaways

Source: Morgan Stanley Research estimates

Base case deletions: STNE (and MBRF and AUGO in the buffer zone)

Base case additions: none

MSCI will rebalance its equity indices on September 1st. However, the company is

expected to release a preview on August 12th. In our baseline scenario, we forecast

no additions to and one deletion (STNE) from MSCI Brazil.

Potential deletions. We highlight Stone (STNE) screens as a deletion in 6 out of the

8 business days considered in our sample. Moreover, MBRF (MBRF3) and Aura

Minerals (AUGO) are close to the minimum requirement of free float market cap to

remain in the index. Therefore, any revision downwards of the companies' free float