March 13, 2017, 17:29 / Business

Evraz shares excluded from MVIS Russia index

This will lead to an outflow of about $20 million from the shares of the metallurgical company Emma Terchenko

“In such cases, shares fall, but then begin to trade again based on fundamental characteristics,” explains strategist Andrey Kuznetsov / EVRAZ

However, according to BCS strategist Vyacheslav Smolyaninov, shares will only be under pressure today and closer to the rebalancing date, the results of which will take effect on March 17 after the close of trading.

Index provider MVIS Indices has removed shares from the MVIS Russia index following a quarterly rebalancing. On this news, Evraz quotes on the London Stock Exchange fell by 5.68% at 14.00 Moscow time compared to the previous close.

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“Exclusion from the index is a technical issue, so it will not have a long-term impact on Evraz’s quotes. Usually in such cases, shares fall, but then begin to trade again based on fundamental characteristics,” explains Sberbank CIB strategist Andrey Kuznetsov.

The outflow of funds from Evraz shares from the VanEck Vectors Russia ETF, for which the MVIS Russia Index is a benchmark, will amount to about $19 million, VTB Capital strategist Ilya Pitersky predicts. Smolyaninov gives a similar estimate - in his opinion, the outflow of investor funds will be in the amount of $20 million. “Which approximately corresponds to three days of trading,” he says. VanEck Vectors Russia is the largest ETF for Russian stocks, Kuznetsov adds.

As a result of the rebalancing of the MVIS Russia index, the weight of depositary receipts of Magnit and the Novolipetsk Metallurgical Plant was increased. shares On the contrary, the weight of Polymetal and VTB depositary receipts in the index was reduced. According to Pitersky, this decrease will lead to an outflow of passive money from securities at the level of $9 million and $6 million, respectively.