Hot topics | Coronavirus pandemic

Yandex Has Risen To Ninth Place In Russia By Capitalization

Yandex Has Risen To Ninth Place In Russia By Capitalization

The capitalization of "Yandex" has reached 1,529 trillion rubles. The company rose to the ninth place in Russia in terms of market capitalization, surpassing Gazprom Neft, whose capitalization at 11:52 was 1.523 trillion rubles.

The change of positions in the rating by the level of market capitalization on the Russian stock market was due to a noticeable increase in the price of Yandex shares after their inclusion in the MSCI Russia index. By 11: 52, the growth of quotations to the close of the previous day was 3% (to 4817.8 rubles per piece), while shares of Gazprom Neft had risen by only 0.52% (to 321.2 rubles per piece).

MSCI, as expected, included Yandex shares in the MSCI Russia index after another quarterly revision, the results of which were announced on the night of August 13, Moscow time. At the same time, the company took the place of MMC Norilsk Nickel in the top 4 of the MSCI Russia 10/40 index following its August rebalancing.

Yandex shares entered the top 4 of the index with a weight of 9.44%, while the weight of Norilsk Nickel securities was lowered by 338 basis points to 4.72%. Thus, the list of "heavyweights" of the MSCI Russia 10/40 index currently includes Gazprom, LUKOIL, Sberbank, and Yandex. All changes will take effect on August 31 after the close of trading.

MSCI indices are applied in nature: many investment funds "buy" them, that is, they invest in shares included in the index structure, in proportion to the weight in it, and also develop complex structural tools based on indices. Inclusion in the MSCI index guarantees higher liquidity for company shares.

The distribution of weights in the MSCI Russia 10/40 index is important from the point of view of assets of funds that invest in Russia since many of them are required to follow the UCITS III directives, which, in particular, imply a ban on the allocation of more than 10% of assets in shares of a single company.