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. Last Updated: 07/27/2016

Shares Rise After Putin Comments

Global depositary receipts of Russian companies rose in London trading Monday as investors welcomed comments by President Vladimir Putin that he may become prime minister following the end of his presidential term in March.

Putin said he would lead the United Russia party's candidate list for State Duma elections in December and would not rule out becoming prime minister.

The comments came after the close of regular stock trading in Moscow.

"This means that Putin's policies and reform program would probably be continued," said Julian Rimmer, head of sales trading at UralSib in London. "So the companies which have done well during this administration will fare well in the next." Those companies include Gazprom and Sberbank, Rimmer said.

UralSib chief strategist Chris Weafer said Putin becoming prime minister would be "a positive proposal for the investment case for at least 2008."

Such a move "would support the view of continued political stability over the medium term, but raises long-term uncertainties," Weafer said, adding that Putin taking such a formal role would raise "plenty of questions about power sharing."

The Russian Depositary Index, which includes Russian GDRs in London, climbed 0.8 percent at 3:48 p.m. in London. Earlier, MICEX closed down 1.5 percent and the RTS fell 1.2 percent. Gazprom GDRs added 0.7 percent, to $44.40, while Norilsk Nickel GDRs rose 2.2 percent to $278.

Bloomberg, MT