Metropol announces the launch of the benchmark Metropol Second Tier Stock Index, which is designed to track the performance of the most promising mid and small cap names traded in the market today. As a leading specialist in “second tier” company research, we have created the index as another step in offering our clients superior analytical support.
We are proud to present the Metropol Second Tier Stock Index, which will reflect the share price dynamics of the most liquid and widely-held names in the “second tier” universe of the Russian stock market.
The index value will be calculated based on the daily closing prices of the stocks that compose the index. The proportion of each stock in the index will be based on the stock’s free float, but no company will exceed 10% of the index. The index value will be calculated daily at the market close. The initial index value will be set at 100 as of Saturday, March 10.
The stocks represented in the index must have a free float of no less than 5%, an average daily trading volume of no less than RUB 3mn, and a market capitalization of no more than USD 2bn. However, there are several exceptions to these rules as certain names exhibit free float or daily trading volumes slightly below our stated thresholds. We plan to launch industry-specific indexes in the near future.
The Index is intended to be broadly representative of Russia’s stock market universe, including companies from the utilities, metals, financial services, transport, auto manufacturing, infrastructure, oil & gas, consumer, real estate development, media and telco sectors. The composition of the index will be reviewed on a quarterly basis.
We believe that the index will assist our clients and other market participants in assessing the performance of the “second tier” portion of the Russian equity market and will be helpful in making investment decisions and formulating trading strategies.
Metropol prides itself on being a leading authority on the second tier market, with unique expertise and knowledge backed by more than ten years of experience in research focused on companies in this segment. Over the past few years, Metropol has developed the market’s broadest analytical coverage beyond the blue chips, and our research efforts continue to expand.
One of our greatest analytical strengths has always been our ability to identify the next blue chip among second tier names. The launch of the Metropol Second Tier Index is another step in this direction.