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Russia Stocks Fluctuate as Surgut Drops on Earnings, VTB Surges

Russian equities swung between gains and losses as oil producer OAO Surgutneftegas dropped after 2012 net income fell, while VTB Group, the country’s second-biggest lender, advanced for a second day.

The Micex Index (INDEXCF) lost less than 0.1 percent to 1,361.77 by 11:22 a.m. in Moscow. VTB added 1.8 percent to 4.79 kopeks, while Surgutneftegas traded down 1.7 percent at 27.476 rubles after surging as much as 3.3 percent earlier.

Surgutneftegas’s 2012 net income fell to 180 billion rubles from 275 billion rubles a year earlier. The company’s preferred shares declined 3.2 percent to 20.999 rubles, the most on the Micex. Investors agreed to buy all $3.3 billion of stock VTB is selling to increase capital, the lender said yesterday. Crude oil, Russia’s chief export earner, traded near a three-week high at $94.32 a barrel in New York.

Russian equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.1 times 12-month estimated earnings and has lost 7.5 percent this year, compared with a 10.4 multiple for the MSCI Emerging Markets Index, which has dropped 2.2 percent in the period.

The number of shares traded on the Micex was 3.1 times above its 30-day average, while the gauge’s 10-day price swings subsided to 15.893. The dollar-denominated RTS Index (RTSI$) retreated 0.5 percent to 1,380.98.

The RTS Volatility Index, which measures expected swings in stock futures, lost 2.3 percent to 20.61. The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, rose 0.3 percent to 26.37 yesterday, while the Bloomberg Russia- US Equity Index increased 0.7 percent to 93.18.

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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