By Ivan Anderzhanov
MSCI added Inter RAO and Sberbank’s preference shares to its emerging markets index yesterday in place of Rostelecom and Transneft shares.
Sberbank’s preferred shares were first added to the index in 2006 but were removed following a drop in the company’s market capitalisation. Sberbank’s weight in the emerging-markets index will be 0.06%, while it will make up 0.88% of the Russia index. Inter RAO’s stock, which is not traded, will make up 0.5% of the Russia index and 0.03% of the emerging-markets index.
From the end of November, the weighting of Brazil and China will be increased which will result in a slight reduction of Russia’s 6.7% weighting.
MSCI Emerging Markets Index has soared 70% this year while the MSCI World Index of developing nations has lagged far behind with a 26% increase.
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