Oct. 28 (Bloomberg) -- Russian stocks climbed for the first time in a week as investors looked for bargains worldwide, while Porsche SE's decision to boost its Volkswagen AG stake raised speculation the global equities selloff may abate.

VTB Group, Russia's second-biggest bank, climbed after Vedomosti reported that Barclays Plc is interested in swapping shares. OAO Gazprom Neft rose after reporting a gain in third- quarter profit.

The ruble-denominated Micex Index increased 4.1 percent to 534.87 in Moscow, rising from a three-year low and trimming its loss for the month so far to 48 percent. The Micex Stock Exchange and RTS were suspended all day yesterday after stocks slumped on Oct. 24. The dollar-based RTS Index today rose 4.8 percent to 575.64.

Volkswagen shares soared today, overtaking Exxon Mobil Corp. at one point to make it the world's biggest company by market value, after Porsche announced plans to raise its stake to 75 percent, triggering demand in Volkswagen shares from short sellers. Russia's OAO Gazprom, once the world's third-biggest company, is now no longer in the top 50, according to Bloomberg data

The surge in the value of Volkswagen ``appears to have acted as a reality check,'' said Chris Weafer, chief strategist at UralSib Financial Corp. in Moscow. ``Investors are thinking that maybe this selloff elsewhere is overdone, but the rally today is fragile and investors are still worried about the oil price weakness.''

VTB

VTB added 0.29 kopek, or 9.8 percent, to 3.28 kopeks on the Micex Stock Exchange. Barclays, Britain's second-largest bank, may seek to swap some of its shares for a stake in VTB after bigger Russian rival Sberbank refused to consider a deal, Vedomosti reported.

Finance Minister Alexei Kudrin told reporters at about the time that Russian stock exchanges closed that VTB's board has received no proposals for a share swap.

Gazprom Neft, the oil arm of OAO Gazprom, advanced 7.6 percent to 42.96 rubles, its biggest gain in more than two weeks. Net income rose 11 percent to 21.5 billion rubles ($787 million) under Russian accounting standards, the Moscow-based company said.

Crude advanced as much as $1.98, or 3.1 percent, to $65.20 a barrel in New York today.

OAO Severstal, Russia's biggest steelmaker, dropped 11.2 rubles, or 14 percent, to 69.11 rubles. Roman Deniskin, the head of Severstal's natural resources unit, said at a mining conference in Moscow today that ``major'' projects may be delayed because of the financial crisis.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net.

Last Updated: October 28, 2008 12:35 EDT