MSCI Frontier Markets Index Including Ukraine Launched

MSCI Barra announced the forthcoming launch of the MSCI Frontier Markets Index for Ukraine among its new family of 19 indices, which will be designed to track the performance of a range of emerging equity markets that are now more accessible to global investors. MSCI Barra will also provide a series of new regional and global composite indices that combine the MSCI Frontier Markets Indices with the existing MSCI Emerging Markets and MSCI All Country Indices. The MSCI Frontier Markets Indices Methodology follows similar principles to the methodology of the MSCI Global Investable Market Indices (GIMI), but takes into account the specific market capitalization structure and liquidity constraints that characterize these markets. Oleksandr Klymchuk: Creation of Emerging Markets and Frontier Markets Composite Index series would secure Ukraine’s representation in at least 11 Indices; apart from this, Ukrainian stocks will have their footprint on the performance of the extended global benchmark – MSCI All Country and Frontier Markets Index (ACWI FM). As MSCI Barra is a recognized source of benchmarks for replication by a broad category of investors, the inclusion of Ukraine is sure to generate additional demand for stocks in the index basket. The constituents and their weights will be available since December 18, 2007; in the process of preparation MSCI-Barra considered 17 Ukrainian stocks for its Investable Market Index. However, based on our discussion with MSCI-Barra, we expect the final number of selected stocks will be close to ten, with most of our Premiere League names in (see our Liquidity Monitor report of Nov. 27).