Russian Stocks Climb to Three-Month High, Led by Gazprom :
Aug. 11, 2006
Russian stocks climbed to the highest in three months. OAO Gazprom led gains as investors increased holdings before the company's weighting is raised in the Morgan Stanley Capital International Emerging Markets Index.
The dollar-denominated Russian Trading System Index gained 1.6 percent to 1657.20, the highest since May 12. The measure is up 1.7 percent this week, its third weekly advance. The ruble- priced Micex index rose 1.8 percent to 1479.96 today.
Shares in Gazprom, the world's biggest natural gas company, rose 2.6 percent to $11.70, gaining 7.7 percent this week. Gazprom's percentage in the MSCI index will increase to 4.8 percent after trading ends on Aug. 31, the MSCI said in April. The weighting was lifted in June to 2.5 percent from 0.4 percent.
``Gazprom has been driving the market for several days, as a lot of Western investors were buying shares'' before the weighting increase, said Oleg Vorotnitsky, head of equity trading at Uralsib Financial Corp. in Moscow. ``Buying in Gazprom keeps leading the whole market up.''
Investors who use MSCI as a benchmark for their holdings buy and sell shares to reflect the composition of the index. MSCI will post details on quarterly changes in its indexes on Aug. 17 at 10:15 p.m. central European time. The changes become effective Sept. 1,2006. [From Internet]
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