Lima, March 4, 2022Updated on 03/04/2022 03:14 pm
S&P Dow Jones Indices will remove Russian stocks from its gauges, joining other global index compilers in shunning the nation after it was hit by sanctions following its invasion of Ukraine.
“Given the deterioration in the level of accessibility of the Russian market that may affect the ability of market participants to replicate the indices S&P DJI containing Russian securities, S&P DJI will reclassify Russia”, the company said in a statement Friday.
The decision will take effect before the open on March 9 and will include all shares listed or domiciled in Russia, including US Depository Receipts and Global Depository Receipts.
S&P joins other benchmark providers, including MSCI Inc. and FTSE Russell, in excluding Russian assets from their products in the wake of the attack on Ukrainewhich has left Russia increasingly isolated economically and has made its securities more difficult to trade.
Securities will be withdrawn from all benchmarks of S&P at a price of zero, and Russia it will be downgraded to “stand-alone” classification, from emerging market status previously. A return to that status would entail Russia going through the standard country classification review process.
S&P said that subject to compliance with applicable law and pricing availability, it would continue to publish some of the country indicators on a stand-alone basis, separate from broader indices and designed for a US-based investor perspective. Russia. That means they may include some assets that are not eligible for money managers in the United States, the United Kingdom or the European Union, according to the statement. The BMI of S&P Russia and the index dow jones from Russia they are among those who will remain.
The links of Russia with global markets shrinking with their foreign exchange reserves frozen, while Moscow’s capital controls and a ban on foreigners selling securities locally have closed the exit for international investors.
Since the trading of shares of the Moscow Stock Exchange opened for the last time on February 25, Russian shares listed in London lost more than 90% of their value before being suspended and European companies with trade exposure to the country have erased more than $100 billion in market value .
Stoxx Ltd. also said this week that it will remove Russian companies from its indices following EU, UK and US sanctions. More than 60 constituents will be removed from its index universe at the close of March 18.