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- MICEX M&M (MICEX Metals and Mining Index): index of stocks of metallurgical and mining companies;
- MICEX MNF (MICEX Manufacturing Index): index of stocks of machine-building companies.
The new sectoral indices will be published in accordance with the new version of the Rules of calculation of sectoral indices, which is to be put into effect on 14 August 2007. The new version of the Rules determines the order of calculation of the new sectoral indices MICEX M&M and MICEX MNF. The indices were first published on 31 December 2004, when their initial value was 1000 points. Besides, in accordance with the new version of the Rules of calculation of sectoral indices, a security can be kept in the index basket (component stocks of an index) if trading in this security on the Exchange is terminated due to emission of shares, placed through conversion. The new version of the Rules establishes new dates of adoption of index baskets. In accordance with the new version of the Rules, index baskets are adopted within the last 5 work days of each quarter. This innovation extends the period between the date of announcement of new index baskets and the date of putting them into force. Lists of securities comprising indices, when they are changed, will be published on the Exchange’s web site and in press releases not later than two weeks before the day of putting index baskets into force.
The MICEX sectoral indices, together with the MICEX Index, enable to evaluate relative changes in prices of stocks of companies from different industries as well as the movements of prices with respect to the market as a whole. Since the beginning of 2007, the MICEX Index has grown by 6.7%, MICEX O&G has dropped by 10%, MICEX PWR has grown by 17.5% and MICEX TLC has grown by 7%. The launch of the new indices reflects the rapid development of the Russian stock market. It is another step aimed at providing new investment possibilities to market participants. Today, highly-liquid sectoral securities traded on the MICEX Stock Exchange enable to implement complex investment strategies based on specialized indicators, which include sectoral indices of the MICEX.
Background
MICEX sectoral indices include MICEX O&G (index of stocks of oil and gas companies), MICEX PWR (index of stocks of power companies), MICEX TLC (index of stocks of telecom companies), MICEX M&M (index of stocks of metallurgical and mining companies) and MICEX MNF (index of stocks of machine-building companies). These indices have been calculated since 31 December 2004 (the initial value of indices is 1000 index points). They are price- and market capitalization-weighted (free-float) indices of most liquid stocks of Russian issuers representing different industries. The indices are calculated in the real-time mode and published every 5 seconds. The baskets of the indices are revised quarterly.
