MSCI and FTSE to drop ‘uninvestable’ Russia from Indices
06 March 2022 | Admin
The Week Ahead - Regional Markets
In the wake of the Russia-Ukraine conflict, the skyrocketing crude oil prices are expected to keep GCC equity markets in an upbeat mood. On the one hand, last week, Brent and WTI closed at their highest level since 2013 and 2008, respectively, and are likely to remain at multi-year highs with the supply from Russia stalling.
On the other hand, corporate results and shareholders' meetings will also impact market movements. This week, Alliance Insurance, Agthia, Aldar, Eshraq, Sharjah Insurance, Baladna, among others, are expected to publish their financial results. Moreover, Abu Dhabi Aviation, Air Arabia, Mabanee, NBK, Alba, Milaha, Ooredoo, Oman Fisheries, Musandam Power, and more will consider approving dividend distribution, bonus issue, and share capital increase.
DAMAC Properties' shareholders will vote to approve the company's delisting from DFM.
Note to Management
As a fallout of western governments' economic sanctions on Russia following the invasion of Ukraine, MSCI announced that it would reclassify Russia to Standalone Markets from Emerging Markets.
The global index compiler will implement this reclassification in one go as at the close of 09 March 2022. Furthermore, FTSE Russell said it would delete Russian equities from all its indices effective 07 March 2022. Similar moves are expected from S&P Dow Jones indices and Morningstar, as both launched consultations in this regard.
Meanwhile, to stop a capital flight, Russia has suspended trading in its stocks and derivatives and also stopped foreign investors from disposing of their assets.
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