Micex Link to RTS Sinks Bank St Petersburg as Alrosa Gains

OAO Bank St. Petersburg fell to the lowest level in more than three years after the Moscow Exchange removed the regional lender from its dollar-denominated RTS Index (RTSI$) effective Dec. 18.

Bank St. Petersburg declined 1.6 percent to 52.03 rubles by the close, its weakest level since August 2009. The amount traded was 46,120 shares, equivalent to 1.2 times the three- month average. The shares have lost 28 percent this year as net income in the first half tumbled.

“The bank’s liquidity is disappointing and its market capitalization has declined,” Natalia Berezina, an analyst at UralSib Capital, said by phone from Moscow. “This is another negative factor for the lender.”

The Moscow Exchange will remove the lender and oil producer OAO TNK-BP Holding (TNBP) from the RTS Index, while adding OAO Alrosa, a Russian diamond miner, and OAO Sollers, an automaker, starting Dec. 18, according to yesterday’s statement. The changes are part of the unification of the two gauges as Russia’s benchmark Micex Index (GZMICEX) incorporates 20 new stocks with the largest market capitalization, making it identical to the 50-stock RTS Index, which is priced in dollars.

Bank St. Petersburg has the lowest weighting in the RTS Index at 0.09 percent, data compiled by Bloomberg show. Alrosa rose as much as 2.1 percent before trading up 0.8 percent at 24.057 rubles. Sollers declined 3 percent to 650 rubles. TNK-BP retreated 2.1 percent to 58.82 rubles, extending its drop in the year to 29 percent. The stock has a 0.3 percent weighting in RTS.

BP Plc has agreed to sell its half of TNK-BP, the third- largest Russian oil producer, to OAO Rosneft (ROSN) for $17 billion and 12.8 percent of Rosneft after years of disputes with its billionaire partners.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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