OAO Mobile TeleSystems, Russia’s biggest mobile-phone operator, and AFK Sistema, its controlling shareholder, may be ranked together with the fourth-biggest weighting in MSCI Inc.’s Russia 10/40 index, Troika Dialog and VTB Capital said.
OAO Rosneft, the country’s largest oil producer, OAO Novatek, the second-biggest natural gas company, and potash maker OAO Uralkali may also see their weighting increased in MSCI’s review tomorrow, according to Troika.
“MSCI looks at the free float of both parent and subsidiary companies,” Ovanes Oganisian, a strategist at Troika Dialog in Moscow, said by phone. “Currently MTS-Sistema’s free float is the fourth-biggest, slightly ahead of Rosneft.”
About $750 million of capital inflows will be available for the company in fourth position on the Russia 10/40, Oganisian said. The rebalancing will take place on May 25 and the changes come into effect May 31, according to MSCI.
MTS has gained 4.9 percent since posting a 59 percent first-quarter profit jump on May 21.
“MTS’s better-than-estimated earnings boosted the stock, making it the main candidate for fourth place on the index,” Ilya Piterskiy, an analyst at VTB in Moscow, said by phone.
Rosneft had been the leading candidate for the number-four spot until MSCI canceled its decision to increase its weighting in the separate Russia Index on May 21, Oganisian said.