Russia Stocks Increase, Paring Weekly Decline as Crude Oil Rises
Russian stocks rose for the first time in seven days, paring their weekly decline, as crude oil climbed and a technical indicator signaled the index is oversold.
The Micex Index (INDEXCF) added 0.5 percent to 1,341.44 by 10:44 a.m. in Moscow, poised for a 3.2 percent drop in the week. Russian equities have the cheapest valuations on an estimated price basis among 21 emerging markets tracked by Bloomberg.
Crude, Russia’s chief export, increased for the second day, adding 0.8 percent to $88.44 per barrel in New York. The Micex’s 14-day relative strength index was at 24. A value below 30 signals the gauge is oversold and may be due for a rebound.
Oil producer OAO Bashneft rose 2.5 percent, while OAO Mechel (MTLR), Russia’s biggest coking coal producer, added 1.4 percent. OAO Sberbank, Russia’s biggest lender, increased 1 percent to 96.36 rubles. The S&P GSCI Spot Index of commodities traded up 0.5 percent. The dollar-denominated RTS Index (RTSI$) advanced 1.2 percent to 1,343.30.
The amount of shares traded on the Micex was 77 percent above the 30-day average, while 10-day price swings on the index declined to 14.21.
The Micex trades at 5 times estimated earnings and has lost 9.1 percent this year, compared with 10.4 times for the MSCI Emerging Markets Index (MXEF), which has slid 4.7 percent in the period.
The RTS Volatility Index, which measures expected swings in stock futures, tumbled 4.6 percent to 23.37 today. The Market Vectors Russia ETF, the largest dedicated Russian exchange- traded fund, rose 0.9 percent to 25.69 yesterday, while the Bloomberg Russia-US Equity Index (RUS14BN) added 1.2 percent to 90.42.
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