OAO Novatek, Russia’s second-biggest natural gas producer, fell for a second day on bets investors tracking MSCI Inc. (MSCI:US)’s Russia 10/40 Index will sell the stock after the company’s weighting in the gauge was cut.
The shares retreated 1.1 percent to 298.15 rubles by the close in Moscow, the most since May 23. The benchmark Micex Index rose 2.8 percent to 1,327.08.
“The immediate cause is the anticipation of about $600 million of outflows that will be generated by the halving of its weighting in MSCI Russia,” Julian Rimmer, a trader at CF Global Trading UK Ltd. in London, said by e-mail.
Novatek’s weighting dropped to 4.5 percent from more than 9 percent, Troika Dialog said yesterday, citing MSCI data. The amended index weight comes into effect May 31.
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