What is the MOEX Index?
The MOEX Index (MICEX) is a composite index of the MOEX stock exchange, introduced in 1997. It reflects the capitalization of the main liquid shares of 30 Russian companies that hold leading positions in various areas of the Russian economy, listed on the MOEX. Only securities in free float are considered (the ‘free-float’ principle).
The MOEX Index and RTS Index are the main Russian stock indices.
Which stocks are included in the MOEX Index?
The MOEX Index covers stocks of companies belonging to the following sectors:
- oil and gas
- electric power
- telecommunications
- metallurgy and mining
- machinery
- consumer sector
- chemical industry
- transportation
- mobile communications, IT, and mass media
- banking
A full and up-to-date list of stocks included in the MOEX Index can be found on the website of the Moscow Exchange.
Stocks used to calculate the MOEX Index are not included in the index in equal proportions. The MOEX Index consists of 30 securities, but the proportions of these securities are not the same. Some securities have a higher weight, others a lower one.
How is the MOEX Index calculated?
The calculation of the index takes place during trading on the exchange when transactions are made with stocks included in its composition. The calculation formula represents the ratio of the total market capitalization of the stocks included in the index to the total market capitalization of the same stocks at the initial date, multiplied by the value of the MOEX Index at the initial date.
The calculation base of the MOEX Index is reviewed twice a year (April 25 and October 25) – a variety of different criteria are taken into account, including capitalization and liquidity of the stocks, the value of the free-float coefficient, etc.
The MOEX Index fully complies with international standards for constructing stock indices. It uses a clear and transparent calculation mechanism and meets all the criteria on which mutual investment funds (PIF) can function.
What types of MOEX Index exist?
There are several types of MOEX Indexes
Composite Indices:
- MOEX Index
- MOEX Index 10
Industry Indices:
- MICEX O&G (Oil and Gas)
- MICEX PWR (Electric Power)
- MICEX TLC (Telecommunications)
- MICEX M&M (Metallurgy and Mining)
- MICEX MNF (Machinery)
- MICEX FNL (Finance)
- MICEX CGS (Consumer Sector)
- MICEX CHM (Chemistry and Petrochemistry)
Capitalization Indices:
- MICEX LC (High Capitalization)
- MICEX MC (Standard Capitalization)
- MICEX SC (Basic Capitalization)
Why is the MOEX Index useful for traders?
The MOEX Index is an important indicator of the Russian economy and the financial condition of the country’s system-forming corporations. It serves as an indicator for traders, businessmen, and investors, both Russian and foreign, whose interests intersect with the Russian economy.
Stock market indices, including the MOEX Index, are used in technical analysis, which traders use to build market behavior forecasts. Analyzing the dynamics of the MOEX Index is an essential tool for predicting stock prices in Russia, the ruble exchange rate, and the pace of economic development.
The MOEX Index is also a popular asset traded by traders using futures and options.
FAQ
What is the MOEX Index?
The MOEX Index is a composite index of the Moscow Exchange, reflecting the capitalization of the main liquid shares of 30 leading Russian companies.
How is the MOEX Index calculated?
The MOEX Index is calculated based on the total market capitalization of the stocks included in the index, compared to their initial value.
Why is the MOEX Index important for traders?
The MOEX Index serves as an indicator for traders and investors, helping them analyze market trends and make informed decisions about the Russian economy.
