Moscow Exchange (MOEX: MOEX) has prepared a new edition of the methodology for calculating its index and the broad market index. The new guidelines will come into force on February 21, and the indices will be revised in March, reported press service Moscow Exchange.
The new approach to the formation of bases for calculating indicators will take effect when the maximum number of shares in the indices is reached: 50 for the Moscow Exchange index, 100 for the broad market index. In accordance with the new methodology, shares included in the index calculation base and meeting the requirements may give way to securities with higher indicators of capitalization of free float securities and liquidity.
The Moscow Exchange Index is the main indicator of the Russian stock market. It is calculated on the basis of exchange transactions with the most liquid shares of the largest issuers – they are selected taking into account liquidity, capitalization and the share of free float. The number of shares in the index calculation base is floating, but cannot be more than 50 securities.
The broad market index is calculated on the basis of exchange transactions with the top 100 securities included in the calculation base based on the criteria of liquidity, capitalization and share of free float. The index calculation base includes stocks with a free float coefficient of at least 5%. The number of shares in the index calculation base is also floating, but cannot exceed 100 securities.