Sberbank does not expect exclusions from MSCI Russia Index in Feb review
MOSCOW. Feb 8 (Interfax) - Sberbank Investment Research does not expect any companies to be excluded from the MSCI Russia Index in the review of the index scheduled for February 13, the company said in a report. The results of the review will be announced February 14.
However, Sberbank analysts believe that power company E.ON Russia and drug maker Pharmstandard could be included in the MSCI Russia Standard Index.
"These companies were excluded from the calculation base of the index after their indicators fell below the criteria for volume and liquidity. However, E.ON.Russia, for example, with market capitalization of $5.9 billion and value of shares in free float of $1.4 billion, could be given a weight of 0.6% if included in the index. Pharmstandard, with market capitalization of $3.1 billion and value of shares in free float of $1.4 billion, might also be included in the index, also with a weight of 0.6%," the report said.
Inclusion in MSCI Russia Standard could bring up to $477 million of investment into the shares of each of these companies from funds that focus on equities in reference indexes, including $45 million from institutional investors that follow indexes, the analysts reckon.
Meanwhile, the weight of state-controlled oil major Rosneft could be reduced when its free float decreases from 12% to 9%.
"MSCI announced this in October 2012, but no action was taken in this direction during the November review. Putting Rosneft into a lower category could reduce its weight from 4.5% to 3.4%, which would cause an outflow of investment in the amount of $880 million from the company's shares, including $80 million of investment from index funds," the report said.