Rosneft Drops as MSCI Cancels Weighting Increase on Buyback
OAO Rosneft, Russia’s biggest oil producer, fell to a two-week low as MSCI Inc. canceled a decision to increase the stock’s weighting in its Russia Index.
Rosneft dropped 1.4 percent to 194.99 rubles by the close in Moscow, the lowest level since May 8. The 30-stock Micex Index added 2.1 percent to 1,298.42.
MSCI will not increase Rosneft’s weighting until the results of the company’s share buyback are known, MSCI said in an e-mailed statement May 18. The company would have become the fourth-biggest Russian stock on the index with a 6.4 percent weighting, according to a copy of MSCI’s initial report, e- mailed on May 16.
“The uncertainty that has re-emerged is clearly technically negative for Rosneft,” VTB Capital analysts led by Alexey Zabotkin said in an e-mailed note today. The company had been the “undisputed leader in this MSCI 10/40 race,” they wrote.
To contact the reporter on this story: Ksenia Galouchko in Moscow at email@example.com
To contact the editor responsible for this story: Gavin Serkin at firstname.lastname@example.org