Dixy Surges on Micex Inclusion, Market Limit Bets: Moscow Mover

OAO Dixy Group, a Russian supermarket chain, climbed to the highest level in 10 months after it was added to the benchmark Micex Index and as investors speculated retailers may be allowed to boost their market share in the regions.

Dixy surged as much as 6.4 percent before closing up 5.1 percent at 394.12 rubles in Moscow, the highest level since Feb. 24. The amount of shares traded was 177,330, over 10 times the 3-month average, according to data compiled by Bloomberg.

The Moscow Exchange added 20 new stocks to the ruble-denominated Micex gauge today, making its composition identical to the 50-stock RTS Index. Russia’s antitrust watchdog may allow retailers to exceed the 25 percent market-share limit if they build new shopping areas, Interfax reported yesterday, citing Igor Artemyev, head of the anti-monopoly service. At present retailers can’t add outlets in a region if they have more than a quarter of the area’s total trade volume.

“Softer anti-monopoly rules would be welcome news for Russia’s listed retailers,” Mikhail Terentiev, an analyst at Otkritie Capital, said in an e-mailed report today. If the proposal is adopted, “large retailers will be able to grow by increasing their presence in their existing geographies, which is typically less expensive and faster than conquering new regions,” he said.

Consumer services shares gained 2.8 percent on average on the Micex.

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