Russian stocks may rally 30 percent this year as Prime Minister Vladimir Putin’s government boosts spending on pensions, ports and roads the year before elections and starts its $34 billion asset-sale program, Renaissance Capital said.
OAO Mobile TeleSystems, Russia’s biggest mobile-phone operator, and AFK Sistema, its controlling shareholder, may be ranked together with the fourth-biggest weighting in MSCI Inc.’s Russia 10/40 index, Troika Dialog and VTB Capital said.
OAO Sberbank , the state lender that holds roughly half of Russians’ savings, agreed to buy Troika Dialog to move into investment banking as Prime Minister Vladimir Putin’s government embarks upon its biggest asset-sale program since the 1990s.
Russian equities’ discount to emerging-market stocks will shrink by more than half in the next year as Vladimir Putin works to improve corporate governance and democracy as president, according to Troika Dialog.
Russia’s RTS Index gained, sending the gauge up more than 20 percent from this year’s low on bets central banks will boost economic growth and as investors awaited the monetary policy committee’s meeting in Moscow.