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- MICEX LC (MICEX Large Cap Index) – index of stocks of large capitalization companies
- MICEX MC (MICEX Mid Cap Index) – index of stocks of medium (standard) capitalization companies
- MICEX SC (MICEX Start Cap Index) – index of stocks of small (basic) capitalization companies
The MICEX capitalization indices are a new information product enabling to assess the relative change in prices of stocks of companies segmented by the size of their capitalization. The developers of the concept of the capitalization indices took into account the international practice of creating and calculating stock market indices and the realities of the Russian market.
The Rules of Calculation of Capitalization Indices, worked out with the participation of the Index Committee attached to the MICEX Stock?? Exchange, come into force on 6 August 2007. In accordance with the Rules, issuers are subdivided into three groups, each forming the basket of the corresponding capitalization index. The Rules establish the following number of stocks in the baskets of MICEX LC, MICEX MC and MICEX SC indices: 15, 30 and 50 stocks. On 1 August 2007 they accounted for 81.0%, 13.3% and 5.0% of the market capitalization correspondingly. Issuers whose stocks were not included in the baskets of the capitalization indices account for about 0.8%. On 1 August 2007 the compound capitalization of issuers of stocks included in the basket of the corresponding index amounted to 75.4 billion dollars, 124.3 billion dollars and 43.3 billion dollars.
In accordance with the Rules, the index baskets are revised quarterly. To subdivide stocks for inclusion in the baskets of the capitalization indices, the MICEX SE uses an aggregate indicator which takes into account the share of the issuer’s capitalization in the total capitalization of all issuers whose stocks are admitted to trading on the Exchange and the share of the volume of trading in the issuer’s stock in the total volume of trading in stocks on the Exchange. Only common stocks are included in the baskets of capitalization indices. 31 December 2004 is taken as the day of the beginning of calculation of the MICEX capitalization indices, the initial value of the indices is set at 1000 points. The values of the indices were calculated retrospectively for the period from 31 December 2004 so that the new indices could be used effectively from the first day of their publication.
Find information on the values of the capitalization indices for the above-mentioned period the weights of stocks in the indices on the web site of the MICEX SE: www.micex.ru/stockindices
The calculation of the capitalization indices by the MICEX Stock Exchange is aimed at improving investment opportunities of the Russian market and strengthening the positions of the MICEX Stock Exchange on the market for Russian securities. This measure is a part of the Exchange’s policy aimed at improving the possibilities of market participants and widening the range of issuers represented on the organized securities market.
Background
At present, the MICEX Stock Exchange calculates composite MICEX Index, the MICEX 10 Index (blue chips index) and sectoral indices: MICEX O&G, MICEX PWR and MICEX TLC. New capitalization indices MICEX LC, MICEX MC and MICEX SC are price- and market capitalization-weighted (free-float) indices of stocks of Russian issuers. The indices are calculated in the real-time mode. The MICEX Index is published every 1 second, sectoral and capitalization indices are published every 5 seconds. The basket of the MICEX Index is revised twice a year, the baskets of the sectoral and capitalization indices are revised quarterly.
