Sistema/MTS loses MSCI 10/40 heavyweight status, overtaken by Magnit
MOSCOW. May 28 (Interfax) - Depositary receipts for shares in Russia retailer Magnit have moved into fourth in the MSCI Russia 10/40, overtaking the Mobile TeleSystems (MTS) /Sistema pairing, as a result of the index's semi-annual re-balancing, according to MSCI data.
Magnit's weighting in the index is 9%, while MTS/Sistema's aggregate weighting fell to 4.5%, with MTS falling from 7.0% to 3.66% and Sistema from 1.7% to 0.87%.
As expected, the other heavyweights on the MSCI Russia 10/40 Index stayed put: Lukoil shares at 9%, Gazprom shares at 9% also and Sberbank ordinary and preferred shares at 8.43% and 0.57%, respectively.
The results of the review were expected, and are not expected to have a significant influence on the share prices of the companies in question.
Notably, the weightings of Severstal increased from 2.7% to 3.5% and that of FGC UES from 1.85% to 2.65%. Inter RAO UES has a new weighting of 1.85%.
The changes to the MSCI Russia 10/40 Index come into effect after close of trading on May 31.
Weighting in the MSCI Russia 10/40 index is important from the point of view of the assets of funds investing in Russia, since many of them have to comply with UCITS III requirements, which state that a fund cannot invest more than 10% of its assets in securities issued by a single issuer.