The global index provider's annual review adds 60 stocks and deletes 64 from its MSCI Standard Index Series with effect from the market close on May 31. The MSCI Standard Index Series consists of global, regional and country-specific indexes, which are used by some fund managers as performance benchmarks.

The SET Index yesterday shrugged off the MSCI news by closing almost one per cent higher at 716.44.

Delta was unchanged at Bt15.80, Kim Eng Securities was off 0.61 per cent at Bt16.20, Kiatnakin Bank was up 0.85 per cent at Bt29.75, Tisco Bank closed 0.89 per cent higher at Bt22.70, Thai Union Frozen Products dropped 1.36 per cent to Bt21.70, Italian-Thai was up 0.91 per cent at Bt5.55 and Sahaviriya Steel climbed 0.91 per cent to Bt1.11.

Patareeya Benjapholchai, president of the Stock Exchange of Thailand, rushed to soothe market jitters by saying that the dropping of the Thai firms would not hurt investment sentiment in the market due to the continuing buying spree of foreign investors.

"Foreign investors can be divided into several groups, some invest regardless of MSCI's benchmark, and we can witness that foreign investors keep snapping up Thai shares," she said.

In terms of fundamentals, Thai stocks remain cheap and offer high dividend yields, she added.

Uncertainty as to whether the general election will be held as scheduled late this year is the big factor casting a dark cloud over the stock market, Patareeya said.

Low trading liquidity was the main cause for the MSCI Index losing the seven Thai stocks, followed by the unfavourable stock market sentiment, she said.

Mayuree Chowikran, director for research at Siam City Securities, said the bourse would take MSCI's announcement in its stride as MSCI had recently sent a signal that it would eliminate some stocks that did not meet its criteria.

Also, the deleted stocks do not show up on foreign investors' radar, given their relatively low market capitalisation.

As of Thursday, the market valued Delta at Bt19.7 billion, Kiatnakin Bank at Bt15.24 billion, Italian-Thai at Bt23.07 billion, Sahaviriya Steel at Bt14.41 billion, Kim Eng at Bt9 billion, Tisco Bank at Bt12.19 billion and Thai Union Frozen Food at Bt19.23 billion.