RusHydro Jumps on Inclusion in Index

RusHydro posted strong first-half results Thursday and its shares soared, helped by its inclusion in a benchmark index for emerging markets.

MSCI Barra said the MSCI emerging markets index would include RusHydro as of Aug. 29.

RusHydro, the world's second-largest producer of hydroelectricity after Hydro-Quebec, said net profits to Russian accounting standards rose 40 percent year on year to 7.96 billion rubles ($327 million) in the first half of 2007.

Revenue also rose to 29.30 billion rubles during this period, compared to 20.86 billion rubles a year ago.

But RusHydro's forecast for full-year net profit was slashed by more than 20 percent to 13 billion rubles, the firm's financial director, Sergei Yushin, said during an online conference.

A recent dry spell has sapped the power of Russia's rivers and cut into the output of hydroelectric dams.

Its stock rose 9.2 kopeks, or 5.9 percent, to 1.66 rubles on the MICEX exchange after gaining as much as 9.3 percent earlier in the day.