Russian shares advanced on speculation the country’s depositors won’t suffer severe losses in Cyprus’s debt crisis.
The Micex Index (INDEXCF) added 0.2 percent to 1,430.70 by 11:01 a.m. in Moscow. Trading volumes were 44 percent below the 30-day average, while 10-day price swings slumped to 11.221, the lowest since March 15. The dollar-denominated RTS Index (RTSI$) increased 0.2 percent to 1,448.31. OAO Surgutneftegas, an oil producer, rose 0.6 percent.
The “largest” share of nonresident deposits in Cyprus comes from Russia, Standard & Poor’s said in a March 26 report. Cyprus government officials will discuss easing bailout terms with representatives of the European Union and International Monetary Fund today, before a meeting of euro-area finance officials later this week.
The shares of the Moscow Exchange retreated for a second day, slipping 0.9 percent to 49.29 rubles. The bourse’s fee and commission income from the securities market fell 26 percent last year from a year earlier to 3.08 billion rubles, according to the statement.
The RTS Volatility Index, which measures expected swings in stock futures, lost 0.4 percent to 18.44 points today. The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, dropped 1.2 percent to $27.41 yesterday. The Bloomberg Russia-US Equity Index (RUS14BN) declined 0.1 percent yesterday.
Russian equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.3 times estimated earnings, compared with a multiple of 10.9 times for the MSCI Emerging Markets Index, which has slid 2.2 percent this year.
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