Moscow. October 16. Index provider MSCI has decided to exclude the shares of Uralkali MSCI Russia, said the analyst of “VTB Capital” Ilya St. Petersburg. The changes will take effect October 21.
As a result of buyback free float fell below 14.5 per cent, the index provider MSCI downgraded the FIF Uralkali below 0.15. Thus, the shares of this company no longer fit the criteria for the MSCI indexes and would be removed.
The exception of the company’s shares from the MSCI Russia index was expected. As reported, according to estimates from St. Petersburg, it will lead to the outflow of these securities of approximately $30-35 million from passive funds.
A subsidiary of Uralkali Enterpro Services completed the repurchase 21,98% of the share capital of the parent company under the buyback program. As a result the company’s free float decreased from 23,35% to 13.9%.
The MSCI indexes are applied: many investment funds their “buy” that is invested in stocks included in the index structure, in proportion to the weight in it, as well as developing complex structured instruments based on the index. Inclusion in the MSCI index guarantees the companies more liquidity.