WASHINGTON, D.C., Feb. 5- The International
Finance Corporation (IFC) launched on February 4, 1997 new IFC Investable
Indexes for Egypt, Morocco, Russia, and Slovakia. At the same time, it
upgraded the Slovakia Index from its monthly covered "frontier market"
series to its daily Global Index series.
The inclusion of the new markets into IFC Index coverage is expected to
enhance portfolio investment into those markets by domestic and international
investors, as the markets have become comparable with other leading emerging
markets. According to the manager of IFC's Emerging Market Data Bases,
Robert Shakotko, "The impact of these new Indexes for Egypt, Morocco,
Russia and Slovakia will be particularly significant because IFC Investable
Indexes are typically used by fund managers to evaluate portfolio performance.
Hence we can expect the Indexes to attract new portfolio investment flows
to these four countries."
On September 30, 1996 IFC added Egypt, Morocco and Russia to its coverage
of emerging stock markets under the Global Index series. At the same time
Slovakia was included in the monthly listing of "frontier markets."
The decision to include these markets in the Investable Index series demonstrates
the progress made in the expansion and mature development of their stock
IFC publishes emerging stock market indexes which are recognized as reliable
market benchmarks in the worldwide financial industry. The index coverage
has expanded rapidly in recent years and currently IFC tracks 44 countries.
IFC indexes have two index series: Global Index series and Investable Index
series, with each series comprising country indexes, regional indexes and
a composite index .
The IFC Global Indexes are created from the local investors' perspective
to represent overall market movement without taking into account foreign
investment restriction. From today, the IFC Global Index series covers
31 countries including Slovakia on a daily basis and 13 frontier markets
on a monthly basis. The Slovakia Global Index is a stand-alone country
index and its not being included in the Global Composite Index. Daily calculation
of an IFC Global Slovakia Index, however, means that this index becomes
eligible for inclusion in the IFC Global Composite Index in the future.
The IFC Investable Indexes are created from the international investors'
perspective to represent market movement of the universe available to foreign
investors. From today IFC Investable Indexes cover 30 countries on a daily
basis. The four new Investable Indexes are stand-alone country indexes
not being included in the Investable Composite Index at this stage. These
markets are expected to be included in the Investable Composite Index when
they become sufficiently accessible by foreign investors in terms of liquidity
and custodian/settlement mechanism.
IFC is a member of the World Bank Group and is the leading multilateral
source of equity and loan finance for private sector projects in developing