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Russia Stocks Rise Second Day as Crude Gains, Utilities Rally

Russian stocks climbed for a second day as crude oil advanced and power shares gained.

The Micex Index (INDEXCF) added 0.4 percent to 1,345.45 by 10:08 a.m. in Moscow. OAO Inter RAO UES increased 2.1 percent to 1.18 kopeks, while OAO RusHydro jumped 2.4 percent to 50.15 kopeks.

Russian equities have the cheapest valuations on an estimated price basis among 21 emerging markets tracked by Bloomberg. Crude, Russia’s chief export earner, gained for the fifth day, adding 0.7 percent to $89.76 per barrel in New York. Utilities rallied the most among nine industry groups, adding 1.5 percent on average. The 14-day relative strength index for the Micex rose to 27.6. A value below 30 signals the gauge is oversold and set for a rebound.

The S&P GSCI Spot Index of commodities increased 0.4 percent. The dollar-denominated RTS Index (RTSI$) traded up 0.6 percent at 1,341.21.

The number of shares traded on the Micex was 19 percent above its 30-day average, while the gauge’s 10-day price swings fell to 13.009.

The measure trades at 5 times its 12-month estimated earnings and has lost 8.7 percent this year, compared with a 10.3 multiple for the MSCI Emerging Markets Index (MXEF), which has dropped 3.7 percent in the period.

The RTS Volatility Index, which measures expected swings in stock futures, slipped 1.5 percent to 23.30, falling for a second day. The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, was little changed at 25.67 yesterday, while the Bloomberg Russia-US Equity Index (RUS14BN) added 0.8 percent to 90.57.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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