VTB Gains Fourth Day on MSCI Weighting Boost Bets: Moscow Mover

VTB Group, Russia’s second-biggest lender, rose for a fourth day as investors speculated MSCI Inc. (MSCI) will boost the stock’s weighting in its Russia Index following a share sale, triggering more than $60 million in fund inflows.

VTB added 2.8 percent to 4.93 kopeks by 4:32 p.m. in Moscow. The amount of shares traded was 37 billion, equivalent to about 82 percent of the three-month average. Its global depositary receipts gained 2.6 percent to $3.143 in London.

The lender is selling $3.3 billion of new shares in Moscow and has secured investors, including Norges Bank Investment Management, the world’s largest sovereign fund. VTB’s free float will rise 14 percent after the offering, which is expected to close by May 24, according to Sberbank CIB. That will allow MSCI to boost the stock’s weighting to 3.3 percent from 2.1 percent, potentially triggering $64 million in passive fund inflows, Sberbank said.

“In a few days VTB will be increased in the MSCI,” Kirill Bagachenko, who manages about $3 billion in Russian equities at TKB BNP Paribas Investment Partners in St. Petersburg, said by phone. That will draw about $60 million from index trackers as well as possible inflows from active managers, he said.

The state-run bank is selling 2.5 trillion new shares at 4.1 kopeks apiece, VTB said on April 26. The government stake of 75.5 percent in VTB is expected to fall to 60.93 percent following the placement, VTB said on April 29.

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

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