MSCI raises Nornickel FIF to 0.4 after Metalloinvest sells its stake, as expected - VTB Capital
MOSCOW. July 24 (Interfax) - Index provider MSCI has raised Norilsk Nickel's (Nornickel) Foreign Inclusion Factor (FIF) from 0.35 to 0.4 due to Metalloinvest selling its stake in metal company, in line with expectation, VTB Capital analyst Ilya Pitersky said in a report.
The changes will come into effect on July 25 after the market closes.
Pitersky's report said that Nornickel's FIF raise will increase the weight of the company's on the MSCI Russia Index by 74 basis points to 5.91%.
According to the expert, the increase in Norilsk Nickel's weight on the MSCI would lead to around $89 million of capital coming in for the company's shares from passive investors.
The Foreign Inclusion Factor (FIF), applied to Russian companies, is an estimate of the free float.