Moscow Exchange Rises on MSCI Inclusion Bets: Moscow Mover

OAO Moscow Exchange climbed the most in more than two weeks on bets the bourse will be added to MSCI Inc.’s Russia gauge, triggering capital inflows.

The shares increased as much as 2.9 percent and rose 0.2 percent to 61 rubles by the close in Moscow, the strongest advance since Oct. 18. The amount traded was equivalent to about 6.6 times the three-month average.

MSCI will add Russia’s main equities and fixed-income exchange to the Russia Index during its rebalancing tomorrow, according to VTB Capital and MidLincoln Research. Moscow Exchange’s weighting will equal 0.5 percent after the change, VTB said, while MidLincoln sees its weighting at 1 percent. Moscow Exchange has climbed 11 percent since its initial public offering in February.

The stock “will see its weighting increase significantly,” Julian Rimmer, a trader at CF Global Trading UK Ltd., said by e-mail from London. “I would be a buyer.”

The addition to MSCI Russia may bring about $300 million in fund inflows to the Moscow Exchange shares, Ovanes Oganisyan, an analyst at MidLincoln, said by e-mail today. The bourse’s weighting may be increased to 0.9 percent in February, according to Ilya Piterskiy, a Moscow-based analyst at VTB.

The Moscow Exchange moved on Sept. 2 from a system of T+0, in which trades are settled on execution, to a T+2 mode. The transition began in March. MSCI said on Oct. 24 that it will combine the volumes on the T+0 and T+2 trading systems during the transition period in order to calculate ratios used to assess how liquid equities are, according to an e-mailed statement.

The bourse, which raised 15 billion rubles ($463 million) on its own exchange this year, was added to the 50-stock Micex and RTS indexes in March, and currently has a 0.5 percent weighting on the Micex.

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