MICEX Index is a capital-weighted price index of the 30 major and most liquid Russian stocks traded at the MICEX Stock Exchange (MICEX SE), calculated in real time (dividend income is excluded in the index calculation).
MICEX Index is one of the oldest Russian stock indices which has been calculated since September 22, 1997 (the initial value of the index is 100 points). MICEX Index is the main index of MICEX SE which tracks the Russian equity market and serves as underling for derivatives and structured products. MICEX Index is the leading indicator of the Russian securities market, which covers nearly 80% of the market capitalization of the Russian equity market.
From the 100 most capitalized stocks traded at MICEX SE which have free-float of at least 5% the 60 most liquid stocks (in terms of trades quantity) are selected and ranked by composite criterion.
MICEX Index comprises most liquid Russian stocks (traded on the MICEX Stock Exchange) that belong to one of the 10 sectors:-
Oil and Gas; Electric utilities; Telecommunications (fixed line); Metals and Mining; Industrials; Consumer goods; Chemicals; Transportation; Mobile telecommunications, Information Technology and Media; Banks.
Oil and Gas constitutes 50.1% of the sectoral allocation of the index followed by Financials at 16.3%, Materials at 12.9%, Consumer and Retail at 8.5%, Telecommunications at 5% and other sectors at 7.3%.
The MICEX Index Watch List may include a stock which is not comprised in the current index composition. For inclusion in the MICEX Index Watch List a stock is to belong to one of the 10 specified sectors set out above. Current index composition and the MICEX Index Watch List taken together may not include more than 9 stocks from a single sector. The MICEX Index Watch List by itself may not include more than 3 stocks from a single sector. If for any issuer one class of its stock is comprised in the current index composition other stock class of the issuer cannot be included in the MICEX Index watch List. For any issuer only one class of stocks can be included in the MICEX Index watch List (common or preferred).
The number of stocks in the MICEX Index Watch List is variable, and depends on the current index composition as well as on eligible stocks liquidity and profile.
Extraordinary review to the MICEX Index composition have to be performed if a stock no longer shows required free-float level or the trading of a stock has been suspended. If a stock is suspended, it may remain in the MICEX Index at the price at which it was suspended for up to 3 business days. After this a stock is replaced with another stock chosen from the MICEX Index Watch List.
The MICEX index composition is reviewed semi-annually on April 25 and October 25. The Index Committee submits recommendation on the index composition to the MICEX SE Board of Directors which approves the index composition in 5 trading days prior to the end of March and September. Appropriate information is published the next day after the decision is taken. Free-float and weighting coefficients of the stocks included into the index are adjusted quarterly and published at the first trading day of a quarter. Stocks eligible for the index composition for the next period are chosen from the MICEX Index Watch List.
The MICEX has given a return of 24.67% on a year on year basis and has gained 26.47% year to date. The index reached an all-time high of 1969.91 during December 2007 and a low of 18.53 in October 1998. The index has a Price to Earnings ratio of 26.7 in the current scenario. Gazprom company has the highest weightage of 15% in the index followed by LUKOIL with a weightage of 12.25%, Sberbank with 9.55%, Magnit with 7.75% and Surgutneftegas at 3.79% while others have less than 3% weightage each in the index.