MICEX Index to be reformed
Yesterday, the Moscow Exchange unveiled its plans for the structure of the new index family which is set to replace the MICEX and RTS indices. According to materials on the website, as of 18 December 2012, the MICEX Index will be renamed the Moscow Exchange Index (MOWEX), which will comprise 50 stocks (vs. 30 currently). In addition, the Moscow Exchange is going to introduce an index of the 15 most liquid companies. These initiatives have yet to be approved by the exchange’s Index Committee, which we expect to meet some time in the first half of October.
We note that Russian mutual funds’ assets under management in equities account for some USD 4.5bn and are overwhelmingly benchmarked to the MICEX-30 index. With the new indices substantially differing from the current MICEX-30 Index, we note that this development might result in sizeable rebalancing flows at local mutual funds, which would have measurable impact on the behaviour of individual stocks. We note that there is not currently sufficient information to assess the impact of the changes.
Alexey Zabotkin, Sergey Galkin, Ilya Piterskiy
VTB Capital analyst
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