OAO Mobile TeleSystems, Russia’s biggest mobile-phone company, and controlling shareholder AFK Sistema climbed on bets the stocks may be ranked together, giving them the fourth-biggest weighting in MSCI Inc.’s Russia 10/40 index.
MTS rose for a second day, gaining 1.3 percent to 218.75 rubles by the close in Moscow. Sistema added 1.4 percent to 22.812 rubles, taking its weekly increase to 3.7 percent.
Investors may channel $750 million into the company in fourth position on the Russia 10/40, according to Troika Dialog. The rebalancing will take place today and the changes come into effect May 31, according to MSCI.
OAO Rosneft had been the leading candidate for the number- four spot until MSCI canceled its decision to increase its weighting in the separate Russia Index (MXRU) on May 21, Troika strategist Ovanes Oganisian said yesterday. Russia’s biggest oil producer retreated 1.9 percent to 193.52 rubles.
OAO Novatek, the second-biggest natural gas company, and potash maker OAO Uralkali may also see their weighting increased in MSCI’s review tomorrow, according to Troika. Novatek gained 0.8 percent to 302.38 rubles, while Uralkali gained 1.6 percent to 223.08 rubles.
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