Severstal, Aeroflot, Rosneft, VimpelCom: Russia Equity Preview

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close in Moscow.

The 30-stock Micex Index climbed 1.9 percent to 1,632.37, the highest level since July 2008. The dollar-denominated RTS Index gained 2 percent to 1,666.03.

Severstal (CHMF RX): Russia’s largest steelmaker is set to benefit after the country won its bid to host the 2018 World Cup, which will require building new stadiums, roads and airports. The shares rallied 4.6 percent to 477.76 rubles.

OAO Aeroflot (AFLT RX): Eastern Europe’s biggest airline is another beneficiary of Russia hosting the World Cup. The country pledged to make “major upgrades and capacity increases” at most airports serving the 13 proposed host cities. The shares advanced 1.5 percent to 80.38 rubles on the Micex.

OAO Rosneft (ROSN RX): Oil, Russia’s chief export earner, rose to the highest level in more than two weeks after European Central Bank President Jean-Claude Trichet said the bank will delay its withdrawal of stimulus measures. Shares of Russia’s biggest oil company gained 2.1 percent to 216.99 rubles.

VimpelCom Ltd. (VIP US): The owner of Russia’s second- biggest mobile-phone operator, which is seeking a $6.5 billion merger with Naguib Sawiris’s Orascom Telecom Holding SAE and Weather Investments SpA, will spin off Egyptian and North Korean assets at book value following the deal. The company said yesterday it aims to close the deal in the first half of 2011 as it seeks approval from shareholders. VimpelCom initially said in October it planned to complete the merger by February. The shares declined 0.3 percent to $15.43 in New York.

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net

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