MSCI Iceland Index reclassified to Frontier Markets status

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MSCI announced on 23 June 2020 that it will reclassify the MSCI Iceland Index from Standalone Markets to Frontier Markets status. Iceland was on MSCI’s “watch list” for potential reclassification since last year.

MSCI also announced the inclusion of the MSCI Iceland Index in the MSCI Frontier Markets Index beginning June 2021, coinciding with the May 2021 Semi‐Annual Index Review.

Based on the simulation using pro forma data as of 18 June 2020, this would lead to the inclusion of two securities in the MSCI Frontier Market Index (excluding Kuwait) with an estimated index weight of 5.24%.

Marel is the largest company listed on Nasdaq Iceland by market capitalization

Marel is listed on both Nasdaq Iceland since 1992 and Euronext Amsterdam since June 2019 under the ticker MAREL. Marel is the largest company listed on Nasdaq Iceland by market capitalization. The market value of the company at year-end 2019 was ISK 473.4 billion (EUR 3.5 billion) compared to ISK 252.6 billion (EUR 1.9 billion) at year-end 2018, an increase of ISK 220.8 billion.

Marel’s shares were the most actively traded on Nasdaq Iceland in 2019. Shares in Marel were traded 4,682 times in 2019 (2018: 3,680 times) for a total market value of ISK 117.5 billion (2018: ISK 96.8 billion), which corresponds to a velocity rate of 31%. As of year-end 2019, 577.1 million or 75% of Marel’s shares were listed on Nasdaq Iceland.

Other index inclusion for Iceland and Marel

Since 2 December 2019, Marel has been included in the VINX benchmark index by Nasdaq OMX Nordic. Based on free float, market capitalization and turnover among other factors, Marel is the only Icelandic company represented in this index.

FTSE Russell has reclassified Iceland to a Frontier market and Marel was added to the FTSE Frontier Index Series, effective 20 September 2019.

In May 2018, international indexing company MSCI incorporated Icelandic stocks in their indexes, including Marel. This was the first Icelandic index since 2008 and since lifting of capital controls in March 2017.

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