Russian stocks climbed for a second day as oil rallied, boosting the appeal of OAO Rosneft and OAO Lukoil, the country’s largest crude producers.
The Micex Index (INDEXCF) rose as much as 0.4 percent before trading up 0.1 percent at 1,409.17 by 12:51 p.m. in Moscow. Rosneft added 0.6 percent to 220.76 rubles and Lukoil increased 0.5 percent to 2,013.80 rubles. The companies have a combined weight in the index of 20 percent.
Oil advanced as much as 1.6 percent to $97.13 a barrel in New York, headed for the biggest three-day gain in nine months as air strikes in Syria renewed concern supplies will be disrupted. Russia’s crude and natural gas industries account for about 50 percent of the government’s budget revenue.
The Micex closed at the highest level in three weeks on May 3 as as employment in the U.S. picked up more than forecast in April, boosting global stocks and oil.
Russian equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.3 times 12-month estimated earnings and has lost 4.4 percent this year, compared with a 10.9 multiple for the MSCI Emerging Markets Index, which has dropped 0.7 percent in the period.
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