Following severe new Western sanctions and restrictions on Russian central bank transactions, the Russian stock market has been described as “unsuitable for investment”, making Russia’s removal from the MSCI index “the next natural step”. a company executive told Reuters on Monday.
“It would not make sense for us to continue to include Russian stocks if our clients and investors could not trade in the market,” Dimitris Melas, head of index research and chairman of the Index Policy Committee, told Reuters.
“It is obvious to all of us that trading in the market has become very difficult, and, in fact, it is not suitable for investment today,” he added.
D. Melas stated that the company could start consulting with the investors immediately, the result of which could be announced within the next few days in parallel with the actions that will be decided.
MSCI announced on Thursday that it “froze” the index and will not apply the changes announced in the context of the February revision, which concerned Russian stocks.
“The next natural step we could potentially take – we have not yet made any decision – but the next natural step could be to look at the actual removal of MSCI Russia or Russian stocks from our indices,” Melas added.
Russia weighs 3.24% on the MSCI Emerging Markets Index and weighs about 0.3% on the company’s global benchmark.
Source: Capital
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