Russian Stock Valuations May Gain on Lifted Curbs, RenCap Says

Russian local stock valuations will increase, closing the gap with global depositary receipts, as President Dmitry Medvedev lifts curbs on domestic share trading, Renaissance Capital said.

The discount on local shares is “likely to disappear by Sept. 1, the deadline for when the new GDR issuance rules are to be shaped,” Ovanes Oganisian, a Moscow-based strategist at Renaissance Capital, said in a report dated today.

Medvedev is removing restrictions on listings of Russian securities abroad and letting foreigners open accounts, the Kremlin said on July 1. The benchmark Micex Index jumped 1.9 percent that day to the highest level since April 29.

The new law may be “developed, rather than implemented” on Sept. 1, Oganisian said.

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