Grids Lead Micex Gains Before Davos Presentation: Moscow Mover
Federal Grid Co. and OAO MRSK Holding led gains on Russia’s Micex Index on bets the government will clarify their merger at the World Economic Forum in Davos.
MRSK Holding rose 1.4 percent to 2.113 rubles by 11:58 a.m. in Moscow, poised for the biggest advance since Jan. 16. Federal Grid increased 2.4 percent to 22.22 kopeks, headed for an Oct. 23 high and the biggest gainer on the Micex.
President Vladimir Putin in November signed a decree transferring 79.55 percent of Federal Grid’s shares to MRSK Holding, the nation’s largest electricity distribution company. The merged company was renamed Russian Grids or OAO Rossiskiye Seti, according to the document. Russia will present Russian Grids at the Davos forum, Deputy Prime Minister Arkady Dvorkovich told reporters in Moscow yesterday.
“We welcome the government’s intention to make the deal more transparent and increase the attractiveness of the utilities sector for international investors,” UralSib Capital analysts Matvey Taits and Kristina Kornich said in an e-mailed report.
Federal Grid tumbled 29 percent last year, while MRSK Holding declined 15 percent. The Micex Index gained 0.3 percent to 1,529.19 today.
To contact the reporter on this story: Ksenia Galouchko in Moscow at email@example.com
To contact the editor responsible for this story: Wojciech Moskwa at firstname.lastname@example.org