Bloomberg News

Russia Stocks Increase as Sberbank Climbs on Conversion Limit

February 06, 2013

Russian equities increased for the second day as OAO Sberbank climbed after reaching its depositary receipt conversion limit.

The Micex Index added 0.4 percent to 1,546.71 by 10:50 a.m. in Moscow after rising 0.3 percent yesterday. Of the 50 stocks in the gauge, 10 fell, one was unchanged and 39 rallied. The dollar-denominated RTS Index added 0.6 percent to 1,624.33.

Sberbank, Russia’s largest lender, added 0.8 percent as Bank of New York BNY Mellon issued a statement halting its depositary receipt program. Sberbank has the largest weighting on the Micex Index at 15 percent. Its Moscow-traded shares have climbed 16 percent this year, while the company’s depositary receipts have risen 17 percent.

“Sberbank is the market’s favorite, the highest quality Russian stock,” Natalia Berezina, an analyst at UralSib Capital, said by phone from Moscow.

The lender’s depositary receipts closed up 0.6 percent yesterday. The 10-day volatility on the Micex climbed to 10.875. Utilities rose 1 percent, the most of nine industry groups.

OAO Aeroflot, Russia’s biggest airline carrier, surged 1.8 percent, the biggest gainer on the Micex.

The number of shares traded on the Micex was 23 percent above the 10-day average, data compiled by Bloomberg show. Standard & Poor’s GSCI Index of commodities was steady at 677.08.

Crude oil was little changed at $96.68 per barrel after rising 0.5 percent yesterday. Russia gets about half of its budget revenue from oil and natural gas.

Lowest Valuations

The Market Vectors Russia ETF (RSX:US), the largest dedicated Russian exchange-traded fund, rose 0.6 percent to $30.73 yesterday. The RTS Volatility Index, which measures expected swings in the stock futures, dropped 3.4 percent to 20.16.

The Micex trades at about 5.8 times estimated earnings and has added 4.8 percent this year. That compares with a multiple of 10.4 times for the MSCI Emerging Markets Index, which has gained 1.3 percent over the same period.

Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net


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Companies Mentioned

  • RSX
    (Market Vectors Russia ETF)
    • $16.19 USD
    • 1.27
    • 7.84%
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