June 18 (Bloomberg) -- OAO Rostelecom rose to a one-week high as Sberbank CIB recommended buying the Russian state-run phone company’s stock after a technical indicator signaled it may be oversold.
Rostelecom jumped as much as 3.7 percent before closing up 1.6 percent at 97.41 rubles in Moscow, the highest since June 10. The amount of shares traded was 3.8 million, equivalent to about 93 percent of the three-month average, data compiled by Bloomberg show.
Rostelecom’s relative-strength index sank to 24.3 on June 14, the lowest since April 18, and was at 38.5851 today. A level below 30 may indicate a stock or gauge is oversold. Sberbank raised the shares to buy from hold, according to an e-mailed note today.
“It’s oversold and Sberbank upgraded the stock so it’s a combination of the two” that’s lifing the shares, Julian Rimmer, an equities trader at CF Global Trading UK Ltd., said by e-mail today.
Stock options for Rostelecom’s ordinary shares expired on May 31. Almost half of the shares “may have hit the market over the past two months,” Sberbank CIB analysts led by Anna Lepetukhina said in an e-mailed note today.
“We think technical pressure should soon abate, allowing the stock to start rerating,” the analysts said.
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