A Review of the Russian Blue Chip Index

The S&P 500 is up by just over 9.0% year-to-date. The MICEX Index, the benchmark of the Russian equity market is basically flat year-to-date.

One of the indices on the Moscow Stock Exchange is the Blue Chip Index.  Here is the description of the index from the exchange site:

Moscow Exchange Blue Chip Index is an indicator of the market of the most liquid stocks of Russian companies. The index is calculated on the basis of the stocks of the 15 most liquid and capitalized issues of Russian stock market. The Index is based on the prices of shares, denominated in rubles. 

Currently 17 companies constitute this index. No individual stock is allowed to exceed 20% in weight of the index. As of last month the largest sector weighting in the index was the oil & gas sector accounting for 56.47% of  the index.  The other major sectors in the index were financials with 20.87% and consumer goods and retail with 8.30%. The dominance of the oil&gas sector in the Russian Blue Chip index is not surprising since the Russian economy is mainly a resource-based economy with oil&gas being the largest component.

The constituents of the index are listed below with the ticker on the domestic market and the weights:

S.No.CompanyTicker on the Moscow ExchangeWeight
1JSC "GAZPROM", Ordinary sharesGAZP17,41%
2OAO "LUKOIL", Ordinary sharesLKOH16,29%
3Sberbank, Ordinary sharesSBER14,95%
4Sberbank, Preferred sharesSBERP1,17%
5OJSC "Magnit", Ordinary sharesMGNT7,68%
6"Surgutneftegas" OJSC, Ordinary sharesSNGS3,83%
7"Surgutneftegas" OJSC, Preferred sharesSNGSP2,50%
8"OJSC "MMC "NORILSK NICKEL", Ordinary sharesGMKN5,68%
9JSC "NOVATEK", Ordinary sharesNVTK5,45%
10Rosneft, Ordinary sharesROSN5,17%
11MTS OJSC, Ordinary sharesMTSS5,14%
12JSC VTB Bank, Ordinary sharesVTBR4,35%
13Sistema JSFC, Ordinary sharesAFKS2,71%
14JSC "TATNEFT", Ordinary sharesTATN2,53%
15JSC "Transneft", Preferred sharesTRNFP2,23%
16OJSC Uralkali, Ordinary sharesURKA1,80%
17OJSC "Rostelecom", Ordinary sharesRTKM1,11%


Source: Moscow Stock Exchange

None of the blue chips listed above trade on the U.S. stock exchanges.Some of the them trade on the OTC market including Gazprom(OGZPY), Lukoil(LUKOY), Norilsk Nickel(NILSY), Surgutneftegaz(SGTZY) and Tatneft (OAOFY). The full list of Russian ADRs can be found here.

Another simple and easy way to gain exposure to large Russian companies is via the Market Vectors Russia ETF (RSX). The fund is down about 17% year-to-date.

Download: Russian Blue Chip Index Components (in Excel)

Disclosure: No Positions

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