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RAO UES: No Longer a Blue Chip
Russia’s market has lost a blue chip first time in history. The stocks of RAO UES of Russia shed by over 26 percent from early this year and were crossed out of the RTS and MICEX indices. Their place was taken by the stocks of HydroOGK and some other companies of hydrogeneration. Their key rivals could be the stocks of government-controlled Federal Grid Co. (FSK) that will be launched on the market in July.
Two stock exchanges of Russia, RTS and MICEX, have crossed out RAO UES from their index-compiling lists, as the stocks of the energy holding will be no longer traded starting from June 6. Therefore, RAO UES has lost its blue chip status. MICEX will replace it by common stocks of HydroOGK and Polymetal, as to RTS, its representatives have declined to specify the substitute, but the stocks of HydroOGK are in the respective list already.
RAO UES will be excluded from the list of MSCI index June 6, and the stocks of HydroOGK are in that list now.
To be taken into account for the purpose of index calculation, the stocks are to meet a number of requirements, and the capitalization and trading capacity are the most vital of them. RTS picks out up to 50 stocks amid companies matching the requirements, while MICEX confines to 30 papers. The stocks with the limited market potential are crossed out of the list.
The potential of RAO UES is very limited, although its weight in compiling the RTS index was nearly 5 percent in late February. The energy holding ceases to exist July 1; its investors will get the stocks of wholesale generation companies, territorial generation companies, Federal Grid Company (FSK) and HydroOGK as the substitute.
www.kommersant.com
All the Article in Russian as of May 05, 2008
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