MSCI to Delete Nigerian Securities from Frontier Markets
MSCI Inc. has revealed a plan to delete Nigerian securities from frontier markets indexes despite ongoing forex market reforms on February 29, 2024. The leading provider of critical decision support tools and services for the global investment community, announced the results of the February 2024 Index Review for the MSCI Equity Indexes.
MSCI said it will reclassify Nigeria from frontier market status to standalone market status in one step coinciding with this index review. The platform is carrying out its decision to downgrade the Nigerian index after it complained about inability of foreign investors to get the US dollar out of Nigeria.
“In light of currently observed market accessibility issues, MSCI will not implement changes as part of this Index Review for any securities classified in Bangladesh, Egypt, or Kenya for the MSCI Bangladesh, MSCI Egypt, and MSCI Kenya Indexes or impacted composite indexes”.
It said there will be nine additions to and eleven deletions from the MSCI Frontier Markets Index. The three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization include Casablanca Travaux Generaux De Construction De SA (Morocco), Telekom Slovenije dd (Slovenia) and FPT Securities JSC (Vietnam).
To facilitate index replicability at the time of the reclassification, the Nigerian securities will be deleted from the MSCI Frontier Markets Indexes at the lowest system prices of 0.00001 as of the close of February 29, 2024.
The investment services provider said twenty-nine securities will be added to and 31 securities will be deleted from the MSCI ACWI Islamic Index. The three largest additions to the MSCI ACWI Islamic Index measured by full company market capitalization will be Servicenow (USA), Mondelez International A (USA) and Acwa Power Company (Saudi Arabia).
It said there will be two additions to and one deletion from the MSCI Gulf Cooperation Council (GCC) Countries ex Saudi Arabia IMI Islamic Index. #MSCI to Delete Nigerian Securities from Frontier Markets Banks Face Risks over 24hrs FX Positions Sell Down
