"Stocks of Seligdar and Mecela will no longer be included in the Mossbirji Index starting from June 20"
The Lowdown on Moscow Exchange's Index Shakeup
Starting June 20, Moscow Exchange is giving its index calculation bases a facelift. The Moscow Exchange and RTS indices will be parting ways with shares from Seligdar and Mechel.
The contenders for the coveted index inclusion are plentiful, with shares from the likes of PJSC "Cyandata", Sefai holding, Rusagro, X5, Samolyot Group, Astra group, RusHydro, Rosseti, and more in the running. The elimination list features RusHydro, Rosseti, and Astra group.
The mid- and small-cap indices are all set to embrace the shared presence of Rusagro, Cyandata, RusHydro, and VSH Holding. But the journey doesn't end there. Rusagro and Cyandata will also reign in the broad market index, joining forces with NKP OMK. On the flip side, Kazanorgsintez’s preferred shares, Zaymer's ordinary shares, and IVA will exit the stage.
The Nitty-Gritty:The industry index for chemistry and petrochemicals will undergo a reformation due to the departure of Kazanorgsintez's preferred shares. The financial index will bid adieu to Zaymer's ordinary shares. Rusagro will find a new home within the consumer sector index, while Cyandata shares will join the information technology index. Sayonara, IVA shares.
In a related turn of events, Moscow Exchange has set certain values and additional restrictive weight coefficients for numerous issuers. Cyandata's free-float is now pegged at 34%, while Norilsk Nickel's has ticked up from 32% to 33%. X5's free-float has hiked from 8% to 29%, Yandex from 15% to 17%, and Sovcombank from 10% to 15%.
The Scoop:This revamping process in MOEX indices is a common event, designed to keep up with changes in liquidity, free float, or other index inclusion criteria[1]. The ongoing evaluation of companies for inclusion or exclusion helps maintain the indices' relevance and accuracy in representing the market by incorporating shares that display sufficient liquidity, market capitalization, and investor interest, while dropping those that no longer measure up[1].
So, now you know, Seligdar and Mechel are out, and the contenders are in the heat of the competition, vying for a spot in the indices to represent the market's pulse. Stay tuned for the outcome!
[1] Moore, K. (2022). How Stock Market Indices Work. Investopedia. https://www.investopedia.com/terms/s/stockmarketindex.asp
- The ongoing evaluation of companies for inclusion or exclusion in Moscow Exchange's indices helps maintain the indices' relevance and accuracy, with businesses such as PJSC "Cyandata" competing for a spot in the information technology index.
- The financial index will bid farewell to Zaymer's ordinary shares, while businesses like Cyandata and X5 are among those that have seen changes in their free-float values, a key index inclusion criterion.
