OAO MRSK Holding jumped the most in almost three weeks after Russia’s largest electricity distribution company proposed a five-year investment program which is smaller than investors expected.
MRSK Holding surged 5.7 percent to 1.768 rubles by the close in Moscow, the biggest advance since June 27. The stock led gains on the benchmark Micex Index, which rose 0.6 percent to 1,430.17.
MRSK is planning an 825 billion rubles ($25.5 billion) investment program for the period between 2012 and 2017, the company said in an e-mailed statement today. The company initially estimated its program for the period between 2011 and 2015 at 1.8 trillion rubles, Interfax reported on Feb. 8, citing an internal MRSK report.
“A reduced investment program is positive for the investor sentiment as it means more money will go to the shareholders,” Ivan Rubinov, an analyst at UralSib Capital, said by phone from Moscow.
The company cut its plan because of slower-than-expected tariff growth, Dmitry Doronin, an analyst at Rye, MAN & Gor, said in an e-mailed note.
“We welcome the company’s decision to cut its investment program although mention it was partly forced by new tariff realities,” Doronin said in the note.
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