MSCI adds Astarta to MSCI Ukraine index

MOSCOW. Aug 13 (Interfax) - Index provider MSCI Inc has included shares of Ukrainian agricultural holding Astarta, listed on the Warsaw Stock Exchange, in the MSCI Ukraine index, Ukrainian media reported, citing a statement on the company's website.

The number of companies in this index now increased to two, since until recently only shares of MHP, another Ukrainian agricultural holding, this one listed on the London Stock Exchange, were there.

The latest changes will go into effect at the close of the markets on August 30.

MSCI excluded Ukraine from the MSCI Frontier Markets Index from August 2015 after the National Bank of Ukraine restricted capital transactions in March of that year, prohibiting the repatriation of funds from the sale of securities and dividends.

MSCI said that for a country to be considered a Frontier Market, cross-border capital movements must be permitted at least partially. As a result, the MSCI Ukraine Index was reclassified to Standalone Market status. Currently, the MSCI Ukraine Index belongs to the MSCI Frontier Markets Small Cap family of indices.

At the same time, in August 2015, shares of PJSC Motor Sich and PJSC Ukrnafta, later nationalized after the start of the military operation in Ukraine, were excluded from the MSCI Frontier Markets Index, and PJSC Centernergo was excluded from the MSCI Frontier Markets Small Cap Index.

According to MSCI, the MSCI Ukraine index fell 23.4% in 2023, while the MSCI Frontier Markets index grew 11.6%; a year earlier it fell 63.9% with a drop in the MSCI Frontier Markets index by 26.3%.

But the MSCI Ukraine index grew 6.4% in July 2024 and 10.9% over the past three months with the MSCI Frontier Markets rising 1.9% and 5.7%, respectively.