Naftna Industrija Srbije AD, an oil company controlled by OAO Gazprom Neft, jumped the most in nearly six months, extending gains for a second consecutive trading day after Wood & Co. recommended buying the stock.
NIS, the biggest company in the market, climbed 8.15 percent to 650 dinars at 12:11 p.m. in Belgrade, its biggest one-day rally since August 10. It was the best performer in the BELEX15 index of most actively traded assets, which added 3.60 percent to 530.74 points, outperforming other emerging markets worldwide.
Wood initiated its coverage of NIS with a 12-month price estimate of 972 dinars and recommended buying the stock, citing “cheap” valuation relative to peers and growing output.
Growth on the BELEX15 was supported after Royal FrieslandCampina said it would buy two Serbian dairies, majority owned by Salford Capital Partners, bolstering optimism that company valuations in merger and acquisition deals are much better than their present market values, Nenad Gujanicic, head broker at Belgrade-based Sinteza Invest Group AD said in a telephone interview.