Oct. 26 (Bloomberg) -- OAO GMK Norilsk Nickel’s weighting in the MSCI Russia Index may drop about 1 percentage point after Russia’s biggest mining company completes a share buyback this week, according to analysts including Alexey Zabotkin of VTB Capital.
Norilsk’s free float will probably fall to 25 percent from 30 percent, MSCI Inc. said late yesterday in an e-mailed statement. As a result, the company’s pro-forma weight in the MSCI Russia index will decline to 4.49 percent from 5.34 percent, VTB’s Zabotkin, Andrey Amelin and Sergey Galkin said today in an e-mailed note.
The cut will trigger a potential $280 million of outflows from the stock as Norilsk drops to seventh position in the index from fourth, behind OAO Novatek, OAO Uralkali and OAO Rosneft, they wrote.
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