OAO RusHydro (RSHYY), Russia’s largest hydropower producer, gained 2.8 percent to $2.53 in New York trading yesterday, the highest level in a week. The stock rose 4 percent to 86.01 kopeks, or 2.6 U.S. cents in Moscow. One ADR is equal to 100 common shares.
President Vladimir Putin said yesterday the company is undervalued and the state won’t sell its stake at the current price. Russia is committed to selling state assets and energy companies should consider increasing dividend payments to boost their market value, he said at a meeting with executives and government officials.
“Even though Russia attracted interest today on the back of Putin’s comments, until there is real solid reform progress any such periods of optimism will be brief,” Chris Weafer, chief strategist at Troika Dialog in Moscow, said by e-mail from Moscow. “Only when investors see real progress in the reform agenda will we able to talk about Russia pulling away from external influences. We are a long way from that position now.”