Russian equities gained for a second day as U.S. economic data boosted appetite for riskier assets and oil stocks climbed.
The Micex Index added 0.4 percent to 1,407.31 by 10:19 a.m. in Moscow after losing 1.7 percent last week. OAO Rosneft, the country’s biggest oil producer, added 0.6 percent to 220.78 rubles. The volume of shares traded on the Micex was 1.2 percent below the gauge’s 30-day average, while the index’s 10-day price swings rose to 17.733.
Confidence among American consumers was the highest in almost six years, data showed May 17. Russian funds posted $340 million in inflows in the week ended May 15, according to Renaissance Capital, which cited EPFR Global data.
“U.S. data has been beating expectations lately and supporting the Russian market, preventing it from falling lower,” Stanislav Kopylov, who helps manage about $3.4 billion at UralSib Asset Management in Moscow, said by phone. “Fund inflows are making investors happy. Most likely, these are sovereign funds buying Russian shares.”
Oil producer OAO Surgutneftegas increased 0.7 percent to 26.554 rubles. OAO Tatneft rose 0.6 percent to 201.75 rubles, while OAO Bashneft added 1.2 percent to 2,035 rubles. Crude slid 0.4 percent to $95.67 a barrel in New York.
Russian equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.2 times its 12-month estimated earnings and has lost 4.7 percent this year, compared with a 10.7 multiple for the MSCI Emerging Markets Index (INDEXCF), which has dropped 0.5 percent in the period.
The dollar-denominated RTS Index (RTSI$) traded up 0.5 percent at 1,412.48, advancing for a second day. The RTS Volatility Index, which measures expected swings in stock futures, increased 2.4 percent to 21.25. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. added 1.6 percent on May 17.
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