Bloomberg News

Russia Stocks: Belon, Center Telecom, Polyus Gold, Sberbank

September 03, 2009

The 30-stock Micex Index (INDEXCF) rose 1.6 percent to 1,093.72, according to the data on the Micex Stock Exchange’s Web site. The RTS Index (RTSI$) gained 2 percent to 1,074.05, Bloomberg data show. Trading on the Micex Stock Exchange was halted for about an hour for technical reasons, the bourse said.

OAO Belon (BELO RX), a coal producer part-owned by OAO Magnitogorsk Iron & Steel, jumped 6.1 percent to 13.59 rubles after Morgan Stanley upgraded the shares to “overweight” from “equal- weight” and increased its price estimate to 65 cents (20.60 rubles) from 50 cents “to reflect the rise in coking coal prices,” according to a note to clients.

OAO Raspadskaya (RASP RU), Russia’s largest producer of coal used in steelmaking, climbed 2.4 percent to $2.61 on the RTS. Morgan Stanley increased its price estimate to $3.75 from $2.95.

OAO Center Telecom (CTLK RX), the dominant fixed-line telephone services provider in central Russia, climbed 5.7 percent to 14.089 rubles. Center Telecom was raised to “speculative buy” from “hold” at Uralsib Financial Corp.

“The momentum in Russian interregional telecommunication companies could continue, supported by further news flow on OAO Svyazinvest restructuring,” Konstantin Chernyshev, an analyst at Uralsib in Moscow, wrote in a note. Svyazinvest, the state- controlled holding phone company, plans to combine its seven publicly traded regional phone companies to improve competitiveness and efficiency.

OAO Polyus Gold (PLZL RX), Russia’s largest producer of the metal, surged 8.2 percent to 1,269.68 rubles. OAO Polymetal, the country’s biggest silver miner, advanced 3.4 percent to 258.50 rubles. Immediate-delivery bullion advanced as much as $6.40, or 0.7 percent, to $984.90 an ounce, the highest since June 3. Silver for immediate delivery in London rose as much as 2.1 percent to $15.715 an ounce, the highest since June 5.

OAO Sberbank (SBER03 RX), Russia’s largest lender, gained 8 percent, the most in a month, to 53 rubles, as the ruble climbed the most in three weeks. A stronger ruble discourages Russians from converting local-currency deposits, Sberbank’s main source of funding.

To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@bloomberg.net

To contact the editor responsible for this story: Stephen Kirkland at skirkland@bloomberg.net


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