Bloomberg News

Sberbank Drops on Bets Stock Overbought After Hitting 100 Rubles

February 28, 2012

OAO Sberbank (SBER), Russia’s largest lender, snapped two days of gains after topping 100 rubles ($3.45) a share for the first time in almost seven months.

Sberbank dropped 0.2 percent to 99.39 rubles after rising as much as 0.7 percent to 100.40 rubles on the Micex Stock Exchange in Moscow, the first time it traded above 100 rubles since Aug. 4.

The stock’s 14-day relative strength index closed above 70 yesterday, the threshold that suggests to some traders that equities are overbought. The central bank may sell some of its controlling stake in Sberbank when the stock price moves “closer to 100 rubles,” Bank Rossii First Deputy Chairman Alexei Ulyukayev said in Davos in January.

The central bank, Sberbank’s biggest shareholder, is seeking to raise as much as $7 billion, selling 7.58 percent of the lender, Chief Financial Officer Anton Karamzin said in a May 25 interview. Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, Credit Suisse Group AG and Troika Dialog were chosen in June to manage the sale.

“The 100-ruble level is generally perceived as the minimum level the government will accept,” Julian Rimmer, a trader of Russian shares at CF Global Trading in London, wrote in e-mailed comments today. “To ensure that the placement goes off comfortably they will need some discount and some margin for error. Therefore a figure north of 110 roubles probably triggers the deal.”

To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net

To contact the editor responsible for this story: Brad Cook at bcook7@bloomberg.net


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