One of the important indicators on the Russian market is the Moscow Exchange index (IMOEX). He is familiar to every financier, but not everyone knows some noteworthy facts from his history.
The Moscow Exchange index includes securities, capitalization weighted, share of free-float and adjusted coefficients. Ultimately, the index reflects the mood of the Russian market and can help the financier find general trends..
Twenty years after the start, the index was renamed
Index originates 22 September 1997 G. Until the end of November 2017 G. it was called the MICEX Index, and then it was renamed into the Moscow Exchange Index - for the growth of brand awareness and value.
The twin brother is the RTS index, which did not change its name. Its highlight is, that it is calculated in dollars. Fascinating topic, which indicates the dollar efficiency of an organization from Russia when the value of the dollar changes, and its composition is similar to the Moscow Exchange index. Till December 2011 G., when the merger with the MICEX happened, was the flagship indicator on the RTS stock exchange.
Three securities are included in the index from the very beginning
The first composition of the index contained only 5 Shares: RAO UES Rf (Eliminated), Mosenergo, Rostelecom, Lukoil and MMC Norilsk Nickel.
The last three are still part of the index..
Moscow Exchange Index in 7,6 times ahead in growth S&P 500
The base value of the index is 100 points. The index reached a small value in 1998 G. — 18,53 item. Since launch and last Friday, the index has grown by more than 38,3 times or on 3732%.
To compare, index S&P 500 from the beginning 1997 G. to 20 august 2021 G. grew almost in 6 once or on 489%. But the RTS index for the same time gap increased by 721,9 %. Unconditional growth of the Moscow Exchange index in 7,6 times the height of the American rival.
Night player
In June of last year, an evening trading session in shares was launched at the Moscow Exchange. During its implementation, the 2nd index of the Moscow Exchange is calculated - IMOEX2. The methodology and composition have not changed. The composition of the index base during main or evening trades does not change, it happens on the next working day, therefore, there is no impact on evening trading due to rebalancing. The dynamics of indices to each other is not summarized, they are held separately, with all this at the opening of IMOEX 2 there will be gaps.
Over the entire period of existence of evening trading, they account for an average of 7,2 % total turnover. In the first evening session, the share was smaller - 3,34 %. The highest value fell on 4 Martha 2021 G. — 21,6 %. Agency this evening Bloomberg published material about, that the United States and Britain may impose anti-Russian sanctions.
Papers have not been 50
For almost all the years, the Moscow Exchange index included exactly 50 Papers. The most similar rebalancing was in September 2017 G. But since that time, the number of securities has changed., periodically there were the least 50.
Rebalancing is carried out by a special committee once a quarter. Last time, the characteristics of entry into the index met 44 paper.
The index includes more than just stocks
In addition to shares, depositary receipts are also included in the index. At the moment, their 7: TCS Group, X5 Retail, Mail.ru, Ozone, Fix Price, HeadHunter, Globaltrans. Is there some more 3 shares of foreign issuers: Yandex, Polymetal and Petropavlovsk. 4 shares in the index are preferred.
Three stocks make up thirty-nine percent of the index
According to the last rebalancing in June 2021 G., Gazprom shares have more weight in the index - 14,5 %. From time to time Gazprom gives way to the Savings Bank, as it was during the last 3 rebalances.
Closes the top three heavyweights of Lukoil. All three are in double digits, unlike others. Together they make up about thirty-nine percent of the entire Moscow Exchange index..
Weight is under control
The weight of the top 5 largest organizations is approximately 54%, other 39 securities - forty six percent.
Top 5 Largest Organizations Can't Have Weight, which exceeds sixty percent. The Index Committee limits the weight of one share in the index, applying a specific indicator. This is designed to reduce the impact of the largest organizations in the index..
A large-cap company will not necessarily make it into the index
Capitalization of Gazprom Neft is above eighty-six percent of all companies from the index, but it does not enter the index. The bottom line is, what is its free-float 4,3 %, and for inclusion in the index, this value cannot be less than five percent.
Index weight is not related to capitalization
The largest company in Russian retail is X5 Retail, share in the index - 1,3 %. The smallest contender - Magnet - has a weight in 1,84 %. At the same time, Magnit is significantly lower by capitalization than NLMK or Severstal, but its weight, despite, which is not essential, but more than both steelmakers.
Restrictions apply to foreign issuers. For example, Yandex's weight is limited by special coefficients to reduce the impact of trading on foreign platforms.
