OAO Rosneft dropped to a five-month low as Bank of America Merrill Lynch removed the stock from its list of preferred emerging-market equities, citing concern about the treatment of minority shareholders at OAO TNK-BP Holding.
Rosneft declined as much as 1.7 percent, falling 0.5 percent to 235.37 rubles by the close in Moscow, the lowest price since Oct. 31. About 4.2 million shares changed hands, representing 76 percent of the daily average over the past three months.
TNK-BP Holding, the traded unit of oil company TNK-BP, fell to a record low on March 26 as its new parent Rosneft approved a borrowing limit of about $10 billion from TNK-BP’s affiliated businesses. Igor Sechin, Rosneft’s chief executive officer, warned last year that the company may end TNK-BP’s dividend policy and had no plans to buy out minority shareholders. Pavel Fedorov resigned as Deputy Energy Minister in February, while Svyatoslav Slavinsky replaced Dmitry Avdeev as Rosneft vice-president for finance and economics.
“With the resignation of Mr. Fedorov from the Energy Ministry delaying the passage of reforms, the replacement of Rosneft’s CFO and the treatment of TNK-BP minorities, we are removing Rosneft from Emerging EMEA 1” list, Bank of America analysts said in an e-mailed note today.
Bank of America retains its buy recommendation for Rosneft, according to the report.