Moskovskaya Birzha MMVB RTS : Moscow Exchange announces results of index review

Moscow Exchange announces the updated list of index components and free float ratios effective from 22 December 2017. The indices were reviewed according to the new calculation methodology that came into force on 27 November 2017.

Key changes under the new methodology to the MOEX Russia Index (formerly known as the MICEX Index) and the RTS Index are a move to a floating number of component stocks as well as increased liquidity requirements for stocks. Acron (ords), DIXY Group (ords), LSR Group (ords) and Mosenergo (ords) as well as depositary receipts of Lenta Ltd. will be deleted from the MOEX Russia Index and the RTS Index. From 22 December the indices will comprise 45 (versus the current 50) component stocks.

The MOEX Russia Index and the RTS Index have identical component stocks and weightings; the MOEX Russia Index is denominated in RUB, while the RTS Index in USD.

Under the new methodology, the Blue Chip Index may now include only one security type of an issuer, i.e. either its ordinary or preferred shares, subject to their liquidity and free float market capitalisation. Thus, Surgutneftegas (prefs) will be deleted from the index.

Novorossiysk Grain Plant (ords) and depositary receipts on shares of En+ Group plc will be added to the Broad Market Index, while Cherkizovo Group (ords) will be deleted as its free float sank below 5 per cent, and Kazanorgsintez (ords) will be deleted as its liquidity ratio declined below the minimum threshold.

IDGC of Centre (ords), IDGC of Volga (ords), MOESK (ords) and RussNeft (ords) will be added to the SMID Index that replaces the Second Tier Index. Under the new methodology, financial institutions will be removed from the index; thus ordinary shares of Moscow Exchange and Bank St. Petersburg as well as DRs on shares of QIWI PLC will be deleted. Shares of Cherkizovo Group and LSR Group will be deleted due to their free float and liquidity ratios declining below the permissible level.

Sectoral indices will be also modified under the newly established methodology. Industry classification has been brought more in line with international standards employed by the leading index providers.

TMK (ords), a producer of steel pipes for the oil and gas industry, will be added to the Oil & Gas Index, while Saratov Refinery (prefs) and Slavneft-Megionneftegas (prefs) will be deleted as their weights are now below the minimum threshold of 0.5 per cent. Automobile and media companies such as SOLLERS (ords), Yandex N.V. (ords) and AVTOVAZ (ords and prefs) will be added to the Consumer & Retail Index. Cherkizovo Group (ords) will be deleted from the index. Kazanorgsintez (ords) will be deleted from, while Novorossiysk Grain Plant (ords) will be added, to the Chemicals Index.

The number of companies with low weightings will be deleted from the Metals & Mining Index. Specifically, Ashinskiy metzavod (ords), Mechel (ords), Lenzoloto (ords), Seligdar (ords), Southern Urals Nickel Plant (ords), Lenzoloto (prefs) and Seligdar (prefs) will be deleted from the index. KTC (ords), a coal mining and energy company, and TMK (ords), a producer of steel pipes for the oil and gas industry, will be deleted from the Metals & Mining Index due to updates in the industry classifications. These companies will be categorized as belonging to the energy sector under the new methodology.

IDGC of South (ords), TGC-2 (ords) and TGC-14 (ords) will be deleted from the Electric Utilities Index as their weightings in the index are below the minimum threshold. DRs on shares of QIWI PLC will be added to the Financials Index. They will replace Sistema (ords) that are not now eligible for the sectoral index due to its multi-sector profile.

En+ Group plc is also considered a holding company, and thus its depositary receipts do not qualify for the sectoral indices.

The Exchange has discontinued the Industrials Index as a sufficient number of liquid stocks is not available to calculate the index. The Siberia Index will also be discontinued.

Nauka-Telecom (ords) will be added to the MICEX Innovation Index. It will replace Multisistema (ords) and Chelyabinski zavod PROFNASTIL (ords).

Summary table of changes in the Moscow Exchange Indices' Constituents Lists

Summary table of changes in number of shares employed in the calculation of the Moscow Exchange Indices and included in the waiting lists, as well as free-float coefficients

From 22 December 2017, the following shares will be under consideration:

Under consideration to be added to Moscow Exchange indices:

Under consideration to be removed from Moscow Exchange indices: