Utilities, Precious Metals, Real Estate, Canada, France are among the worst

Source: ML

You will be able to download all slides in power point for this report



MSCI was flagging for a while that it would downgrade Russian shares into FM universe. Yesterday it announced that it will be launching MSCI GEM ex Russia and MSCI ACWI ex-Russia indexes. Which is slightly better outcome than to outright downgrade of Russia to FM index. But still pretty negative as Russia is singled out from investment universe in the ex-Russian indexes. Yesterday it also announced consultation to remove VTB bank as soon as practical as VTB votes to approve issue of new equity, the development that will be quite unfortunate for VTB if investors communicate to MSCI that they want to take the path of deletion of VTB from Russia universe. While MSCI said that Rosneft and Novatek are safe so far. Here is the release.