S&P Dow Jones will remove all Russia stocks from its indices

S&P Dow Jones, which manages both the S&P 500 index and the Dow Jones Industrial Average, said Friday that it was removing Russian stocks from its primary equity indexes, increasing the nation’s financial isolation after that. invaded Ukraine.

The index giant said it would withdraw Russian shares listed or domiciled in Russia, including those listed on US deposit receipts, within its equity indexes before trading on the 9th. March.

• These are the corporations that have withdrawn from Russia

S&P Dow Jones said it would also withdraw Russia from its “emerging market” designation given the “deterioration” of its markets, instead of classifying it as “autonomous”, meaning that Russian companies as a whole should go through a new evaluation at some point. point to take into account for one of the three classifications of index company countries, which are developed, emerging and border.

The decision could go ahead drain foreign investment of Russian companies, as the S&P 500 and Dow Jones indices rely on many US investment funds and ETFs to build their portfolios. When a company is removed from one of the indices, it means that these index-based funds will no longer buy shares of this business, usually causing a decrease in the price of their shares.

The financial impact on Russia of its war in Ukraine has been severe, with the Russian currency falling about a third earlier this week at less than 1 cent after US, European Union and UK sanctions.

S&P Dow Jones’ decision comes after other financial institutions blocked Russia and Russian companies from entering the markets. For example, the London Stock Exchange this week has suspended trading in Russian stocks, Reuters reported.

S&P Dow Jones said it will continue to calculate and publish some Russia-specific indices, although it noted that they may include stocks in which US, British and EU citizens cannot invest. These indices include the Dow Jones Russia Index and the S&P. Russia IMC.

Since February 24, when Russia attacked Ukraine, the Dow Jones Russia index has fallen by 95% and S&P Russia’s BMI has fallen by 41%.

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