Thursday, April 14, 2016 3.23 PM / Mondovisione
After introduction of restrictions on foreign currency trading and the resulting continuous deterioration of foreign exchange market liquidity, MSCI is closely monitoring the situation in Nigeria with regards to market accessibility.
Related to such, MSCI is proposing to not implement changes resulting from the upcoming May 2016 Semi-Annual Index Review and from selective corporate events for the MSCI Nigeria Indexes, as well as selected composite indexes of which Nigeria is a component.
The MSCI Nigeria Indexes are currently classified under Frontier Markets. Ease of capital inflows and outflows is one of the key criteria in the MSCI Market Classification Framework.
Introduction of restrictive measures, such as capital or foreign exchange controls, which can lead to material deterioration of equity market accessibility, may result in the exclusion of such market from the MSCI Frontier Markets Indexes and a reclassification to Standalone Market status.
MSCI welcomes feedback from market participants on the current level of accessibility of the Nigerian Equity Market as well as any potential mitigation plan.
MSCI will continue to monitor the situation and issue further communications as more information becomes available.
MSCI will announce its decision on the treatment of the MSCI Nigeria Indexes and other related indexes on or before April 29, 2016.
The MSCI World is a stock market index of 1,643 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is used as a common benchmark for 'world' or 'global' stock funds. The index includes a collection of stocks of all the developed markets in the world, as defined by MSCI. The index includes securities from 23 countries but excludes stocks from emerging and frontier economies making it less worldwide than the name suggests.
A related index, the MSCI All Country World Index (ACWI), incorporated both developed and emerging countries. MSCI also produces a Frontier Markets index, including another 31 markets (including Nigeria). The MSCI World Index has been calculated since 1969, in various forms.
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