Russia Stocks Rise From Lowest This Year as Rosneft Gains
Russian stocks climbed from the lowest level this year as rising crude prices lifted OAO Rosneft, the country’s biggest oil producer.
The Micex Index (INDEXCF) added 0.2 percent to 1,488.28 by 10:37 a.m. in Moscow, after plunging 1.3 percent yesterday to the lowest since Dec. 28. Of 50 stocks, 38 increased, one was unchanged and 11 decreased.
Oil in New York added 0.2 percent to $92.79, the first advance in three days. Oil and natural gas account for about 50 percent of Russia’s budget revenue. Rosneft, which has the fourth-largest weighting on the Micex at 5.6 percent, gained 0.6 percent.
“For now, markets are staging a minor bounce,” UralSib Capital analysts wrote in an e-mailed report.
OAO Novorossiysk Commercial Sea Port surged 1.7 percent, the strongest increase on the index, as OAO Transneft said it won’t call for the sea port’s board to change management, according to a statement on the oil pipeline operator’s website yesterday.
Transneft Vice President Maxim Grishanin had called on the port’s board to resign on Feb. 18. Transneft and Summa Group control 50.1 percent of the port. Ziyavudin Magomedov, the former chairman of Novorossiysk and the founder of Summa Group, remains on the port’s board, while Marat Shaydaev, a former president at Summa, is the current chairman.
“The disagreement between Summa and Transneft is likely to come to an end, which is positive since the stock has been pressured in recent weeks as the conflict between the two parties escalated,” VTB Capital analysts said in an e-mailed note.
Thirty-day price swings on the Micex fell to 12.261, while the number of shares traded on the gauge was 24 percent above the measure’s 30-day average, data compiled by Bloomberg show. Standard & Poor’s GSCI Index of raw materials was steady at 653.70.
The Micex trades at about 5.6 times estimated earnings and has added 0.9 percent this year. That compares with a multiple of 10 times for the MSCI Emerging Markets Index, which lost 1 percent over the same period.
The Market Vectors Russia ETF (RSX), the largest dedicated Russian exchange-traded fund, gained 0.9 percent to $29.05 yesterday. The RTS Volatility Index, which measures expected swings in the index futures, was little changed at 22.04 yesterday. The Bloomberg Russia-US Equity Index (RUS14BN) of the most- traded Russian stocks in the U.S. fell 0.5 percent.
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