UPDATE 1-Moscow-traded shares in Polymetal, VSMPO ease back after surge

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MOSCOW, March 17 (Reuters) - Moscow-traded shares in Russian precious metals miner Polymetal POLY.MM and titanium giant VSMPO Avisma VSMO.MM eased back on Monday after surging almost 40 and more than 30 percent respectively.

Polymetal and VSMPO Avisma were up 8 percent and 11 percent in Moscow by 1232 GMT. Polymetal's key London-listed shares

POLYP.L were up 4 percent.

The surges could have been caused by technical issues, said Sergei Filchenkov, a salesman at IFC Metropol. "The expiry of contracts expiration caused additional market volatility," he told Reuters.

The Russian benchmark index for metals and mining companies

was up 5 percent after shares were buoyed by signs of some movement on the Russian side to engage in diplomacy over Ukraine.

Polymetal and VSMPO Avisma were not immediately available for comment.

(Reporting by Olga Popova and Polina Devitt; Editing Elizabeth Piper)

((Polina.Devitt@thomsonreuters.com)(+7 495 775 12 42)(Reuters Messaging: polina.devitt.reuters.com@reuters.net))

Keywords: RUSSIA POLYMETAL/STOCKS