Russian equities climbed for a second day as billionaire Vladimir Evtushenkov’s AFK Sistema led gains and better-than-expected U.S. data boosted confidence in a global economic recovery.
The 50-stock Micex Index (INDEXCF) added 1.5 percent to 1,317.63 by 12:19 p.m. in Moscow, paring the slump this quarter to 8.4 percent. The dollar-denominated RTS Index (RTSI$), which entered a bear market June 5, increased 1.8 percent to 1,265.04. The Russian Volatility Index, which measures expected swings in RTS futures, tumbled 6.7 percent, the second day of declines.
OAO Rosneft, Russia’s biggest oil company, may buy Sistema’s oil unit, OAO Bashneft, Vedomosti reported yesterday, citing people it didn’t identify. Evtushenkov said he was unaware of the possible purchase and Rosneft’s spokesman declined to comment when contacted by Bloomberg News. Data in the U.S. yesterday showed durable goods bookings climbed in May and house prices, new-home sales and consumer confidence beat economists’ estimates.
“The U.S. macro data on durable goods orders, consumer confidence and home sales turned out to be better than expected, creating a positive mood,” UralSib Capital analysts led by Konstantin Chernyshev said in an e-mailed note.
AFK Sistema, which holds about 87 percent of Bashneft, rose 2.8 percent to 28 rubles. Preferred shares of Bashneft slid 6 percent to a record-low 897 rubles, the sharpest retreat on the Micex. The company’s ordinary shares were the second-worst performer with a 1.6 percent drop to 1,919.40 rubles.
OAO TMK, the world’s biggest pipemaker by output, added 0.3 percent to 77.23 rubles. Morgan Stanley yesterday said TMK is less sensitive to a drop in raw-materials prices because Russia and the U.S. are its main markets and raised the stock to buy from neutral.
Standard & Poor’s GSCI Commodities (SPGSCI) Index decreased 0.2 percent to 610.93. Crude oil declined 0.2 percent to $95.17, the first day in three. Brent added 0.2 percent to $101.49 a barrel in London.
Russian stocks slumped on June 20 after U.S. Federal Reserve Chairman Ben S. Bernanke said the regulator will probably taper its bond buying later in 2013 and halt purchases around mid-2014 if the world’s largest economy performs in line with projections.
The countries’ equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The economy of the world’s biggest energy exporter grew 1.6 percent in the first three months, the slowest pace since 2009. Bank Rossii held its refinancing rate at 8.25 percent on June 10 after inflation accelerated for a second month in May to the fastest pace in 21 months.
Out of 50 stocks, 31 increased and 19 dropped on the Micex. The volume of shares traded on the gauge was 68 percent below the 30-day average, while 10-day price swings dropped to 19.528, the lowest since June 6.
The Micex trades at 4.9 times its 12-month estimated earnings, having lost about 11 percent this year, compared with a multiple of 9.3 for the MSCI Emerging Markets Index, which is down 15 percent. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. climbed 1 percent to 82.59 yesterday.
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