Russian issuers are gradually leaving Moscow stock exchange — July 20 listing will lose shares of “TransContainer”, Mosoblbank and forms. Market participants are concerned about the increasing cases of withdrawal of Russian issuers, as it narrows the choice of investments. Therefore, they positively regard the admission to the stock exchange formally Depositary receipts of foreign issuers which main activities are concentrated in Russia.Since July 20, the Moscow exchange suspends trading in shares of “TransContainer”, Mosoblbank and forms. All those papers included in the third quotation sheet. The reason for the cessation of trading, in all cases, compulsory purchase of the securities by the majority shareholders, consolidated more than 95% of the shares. With the beginning of the year the exchange has already left five issuers: AVTOVAZ, “Uralkali”, “Dixie”, “Noticefrom”, Chelyabinsk zinc plant, in 2019 halted trading in the shares of “MegaFon”.”Build up quite a sad situation from the point of view of industrial diversification. The main companies by market capitalization on the stock exchange remain exporting companies and issuers focused on domestic demand, almost there,— said the asset Manager BKS Andrey Rusetskiy.— For example, there are almost no manufacturers of products that pharmaceutical industry of consumer goods. They have become non-public in the last ten years.””Delisting of shares of companies small & mid cap will not be a tragedy either for brokers or for the customers”,— said the head of investment banking products and solutions of the Bank “FC Opening” Evgenie Ananev.Additionally mitigate the negative effect of the exchange started the process of admission to trading of Depositary receipts of foreign issuers, but their main business is in Russia. In particular, admitted to trading the shares of Etalon, Mail.ru. In November it is expected that the exchange receipts HeadHunter. In the opinion of the head of Department of broker operations of the ICD, Alexander Aksenov, the exchange “expands, there is an additional opportunity to purchase securities and to make a new investment tools, especially because not all investors have access to foreign exchanges.”However, market participants do not expect strong changes in the structure of investment portfolios. “The credentials of the company de jure are foreign and may not be available for investment by certain categories of investors, for example, civil servants, there are also restrictions on the inclusion of these securities in the composition of mutual funds that invest in Russian assets,” said Andrey Rusetskiy.According to the head of the office of monitoring, control and development of customer service GK “Finam” Dmitry Lesnova, the number of public players will grow: the company attracts private investment to the market, and it is also possible��be included in the calculation of the indices the index providers, which see many Western funds. “Listing on the Moscow stock exchange by Russian companies incorporated abroad, allows index providers to include them in indexes and, in particular, MSCI Russia and MSCI Emerging Markets in which they previously were not present. In particular, waiting for potential inclusion Yandex, over time, can be included Mail.ru, HeadHunter,”— said the chief economist of the “IQ g asset Management” Ovanes oganisjan. It is estimated that Yandex might take in the Russian index of 8% that, according to the conservative estimates can provide the company an influx of $40 million of new foreign investment. Besides, the expert adds, the share of Russia in the MSCI EM may grow at the expense of the shares of the technology company 0.26% that will provide additional inflow of almost $400 million of new foreign investment.Vitaly Gaydayev
