UPDATE 1-VTB shares jump on independent pre-issue valuation

* Stock up 5.4 pct at 0.043 roubles

* Follows Monday report on appraiser valuation

* Analysts expect government to buy whole issue

(Adds analysts, traders comments, background, updates shares)

MOSCOW, August 18 (Reuters) - VTB (VTBR.MM) stock surged in early trading on Tuesday after Reuters reported an independent appraiser had valued it at around 0.048 roubles ($0.001) ahead of a planned share issue.

Shares in Russia's second-largest lender, more than 75 percent owned by the Russian state, rose 5.4 percent to 0.043 roubles per share by 0730 GMT, outperforming the broader market. The MICEX index rose 1.7 percent on the back of VTB gains, outpacing European markets.

Reuters reported late on Monday that shares in VTB were independently valued at about 0.048 roubles apiece ahead of a share sale, a premium of nearly 20 percent to the market. [ID:nLH603600]

"This news definitely fits the bill as a catalyst for VTB shares," Alexei Surov, trader at Zenit bank said.

Analysts and traders said the government will purchase almost the entire issue since investors would not be willing to pay a premium for the shares.

The government has already allocated 180 billion roubles ($5.68 billion) to inject into the banks' capital and the bank could raise more if it attracts investors willing to pay a premium.

"We believe that the government will purchase almost the whole issue since the goal is to recapitalise a bank suffering from mounting bad loans and not to attract new minority shareholders," Rustam Botashev, analyst at UniCredit Securities said in a report.

VTB reported a 20 billion rouble ($630.5 million) loss for the first quarter of 2009 partly due to rising bad loan provisions. [ID:nL4371084] ($1=32.28 Rouble) (Reporting by Dmitry Sergeyev and Olga Popova; editing by Gilbert Kreijger)