Exit from the MSCI index is due to the illiquidity of shares: Ecopetrol

Ecopetrol explained that the removal from the MSCI index is due to its methodology and not liquidity problems of the company’s shares.

“The MSCI company published on November 10 the new composition of its various stock indices worldwide. With regard to Colombia, he stated that Ecopetrol will not be part of that index from November 30 due to the update of methodological calculations regarding the number of free float shares (floating) and their minimum market value (float capitalization). ),” the oil company explained in a statement.

He points out that the methodology contains specific requirements for companies with a float of less than 15%, as is the case for Ecopetrol, which has about 11.5% traded on the Colombian and US stock exchanges (New York Stock Exchange).

“The remaining 88.5%, which is not traded in the stock markets, is owned by the nation through the Ministry of Finance and Public Credit. The situation reported in the index is not due to the liquidity of the stock, which remains one of the most traded stocks on the Colombian stock exchange,” he added.

Source: El heraldo