The Micex Index (INDEXCF) added 0.7 percent to 1,432.36 by 10:39 a.m. in Moscow, the highest intraday level since May 10. Power stocks were the biggest gainers among nine industry groups, adding 1.7 percent on average. The volume of shares traded was 42 percent above the gauge’s 30-day average, while 10-day price swings rose to 17.978. Federal Grid Co. jumped 3.5 percent to 13.09 kopeks.
VTB’s $3.3 billion share sale will boost its free float to 39 percent and may see MSCI Inc. increase the bank’s weighting to 3.3 percent from 2.1 percent, Sberbank CIB said in an e-mailed note today. MSCI’s move may trigger passive fund inflows of $64 million, according to Sberbank. VTB rose 1.8 percent, gaining for a fourth day. The lender’s GDRs increased 2.8 percent to $3.063 yesterday.
“VTB’s SPO went well and the MSCI rebalancing expectations are positive, there’s demand for the shares right now,” Andrey Vashevnik, who manages $25 million as chief investment officer at R&B Investment Fund Ltd. in Moscow, said by phone from Moscow.
Crude, Russia’s main export earner, declined 0.3 percent to $95.86 a barrel in New York.
Russia’s equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.3 times its 12-month estimated earnings and has lost 2.9 percent this year, compared with a 10.6 multiple for the MSCI Emerging Markets Index, which has dropped 0.7 percent in the period.
The dollar-denominated RTS Index (RTSI$) jumped 0.8 percent to 1,443.95. The RTS Volatility Index, which measures expected swings in stock futures, decreased 2.2 percent to 20.01. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. added 0.8 percent yesterday.
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