Sberbank Poised for 2-Week Low on Conversion Halt: Moscow Mover

OAO Sberbank fell in Moscow, heading for a two-week low, a day after the country’s largest lender said it reached a limit for converting local shares into foreign stock.

The shares dropped as much as 1.1 percent in Moscow, before trading down 0.6 percent at 106.24 rubles by 2:48 p.m., the lowest since Jan. 25 on a closing-price basis. The amount of shares traded was about 49 million, equivalent to 59 percent of the three-month average. Sberbank rose as much as 0.6 percent in London before trading up 0.1 percent at $14.18.

Sberbank said in a statement yesterday that its depositary receipt program had reached its limit. Depositary receipts can only account for 25 percent of a company’s shares and 50 percent of its listed shares, under Russian regulations. Sberbank’s depositary receipts are equivalent to four ordinary shares.

“The closure of the program is likely to create a discount of the local line to depositary receipts,” VTB Capital analysts wrote in an e-mailed note today.

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

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.