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3/1, 7:48 PM (Source: TeleTrader)
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Stoxx to drop 61 Russian companies from its indices

The Swiss global index provider and the operator of Deutsche Boerse’s Qontigo data will be removing 61 Russian firms from its indices, The targeted companies are some of the largest in Russia, such as Gazprom, Lukoil, Sberbank, Rusal and Aeroflot.

Stoxx justified the move by citing "restrictions on capital flows and market disruption that materially negatively influences the aggregated liquidity, capitalization or tradability of Russia securities, as well as the impossibility for institutional investors to physically replicate the performance of an index", with all of these being related to the recently imposed sanctions by the West, according to the Financial Times.

The move is the first concrete measure by a major index provider against Russia. Furthermore, Moscow’s stock exchange was closed for a second day on Tuesday, while the country’s central bank has prohibited foreign investors from trading with Russian securities.

Baha Breaking News (BBN) / SP