S&P Dow Jones to remove Russia stocks from its indexes in wake of Ukraine invasion, joining MSCI and FTSE
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- S&P Dow Jones Indices said Friday that it will remove all Russia stocks from its benchmarks next week.
- The change will take effect March 9 and will apply to all stocks listed or domiciled in Russia as well as ADRs and GDRs.
- The overseer of the Dow Jones Industrial Average and the S&P 500 will also strip Russia of its emerging-market status.
S&P Dow Jones Indices said Friday that it will remove all Russia stocks from its benchmarks next week following the country's invasion of Ukraine.
The change will take effect before the market open on March 9 and will apply to all stocks listed or domiciled in Russia as well as American depositary receipts and global depositary receipts.
The overseer of the Dow Jones Industrial Average and the S&P 500 will also strip Russia of its emerging-market status and reclassify it in a standalone category.
"Given the deterioration in the level of accessibility of the Russian market which may impact the ability of market participants to replicate S&P DJI Indices containing Russian securities, S&P DJI will reclassify Russia," S&P Global said.
The announcement from the company follows similar moves from MSCI and FTSE earlier this week.
Russia stocks will be deleted from all FTSE Russell Equity Indices on March 7, and MSCI Russia Indexes will be reclassified on March 9 from emerging market status to standalone markets status "at a price that is effectively zero," the index providers said in separate statements Wednesday.
Russia's war on Ukraine and the waves of Western sanctions that have followed are leaving Moscow increasingly shut off from global markets.
Top Russian banks have been kicked out of the SWIFT messaging system that is considered the backbone of world finance. Foreign currency assets of its central bank have been frozen. More and more companies are announcing they are exiting Russia.
Meanwhile, the country's stock market has been closed all week. The London Stock Exchange has suspended trading in Russian companies. The New York Stock Exchange and Nasdaq have also halted trading in Russian stocks.