Russia’s ‘Uninvestable’ Stocks Cut by MSCI, FTSE Russell
- Decision likely to cause exodus in active and passive funds
- LSE suspends trading in dozens of Russia depositary receipts
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MSCI Inc. and FTSE Russell are cutting Russian equities from widely-tracked indexes, while the London Stock Exchange suspends dozens of Russian depositary receipts from trading, isolating the stocks from a large segment of the investment-fund industry.
An overwhelming majority of market participants see the Russian market as “uninvestable” and its securities will be removed from emerging markets indexes effective March 9, MSCI said. FTSE Russell will delete Russia constituents listed on the Moscow Exchange at a zero value on March 7. Meanwhile, trading in 28 depositary receipts for Russian companies have been suspended on the LSE, Chief Executive Officer David Schwimmer said in an interview with Bloomberg Television on Thursday.