Russian stocks rose for the first time in four days as crude oil gained and better-than-expected Chinese data offset a drop in local manufacturing, stoking appetite for shares in the world’s biggest energy exporter.
The benchmark Micex Index (INDEXCF) increased 0.9 percent to 1,388.27 by 12:18 p.m. in Moscow. OAO Sberbank, Russia’s largest lender, added 1.1 percent to 96.31 rubles. Preferred shares of OAO Mechel (MTLR), a coking-coal producer, climbed 1.5 percent to 55.01 rubles. OAO Rosneft, the country’s biggest oil producer, added 1.3 percent to 237.96 rubles.
Crude climbed 0.4 percent to $105.47 in New York. A Chinese government gauge of purchasing managers topped forecasts and showed expansion. Russian manufacturing fell to the lowest since December 2009 in July, marking the first contraction in almost two years, according to HSBC Holdings Plc. The U.S. Federal Reserve pledged yesterday to continue stimulus. The European Central Bank and the Bank of England review rates today.
“The key driver of the day is positive global economic data and realization that both the Fed and the ECB will maintain their easing programs,” Slava Smolyaninov, an analyst at UralSib Capital, said by phone from Moscow. “Oil is trading at a comfortable level for Russia.”
While data in the U.S. showed gross domestic product grew more than economists estimated in the second quarter, the Federal Reserve said it will maintain its bond buying program amid persistently low inflation.
Russian equities trade at the cheapest valuations based on estimated earnings among 21 emerging economies tracked by Bloomberg. Sberbank’s London shares increased 1.4 percent to $11.69 in London. OAO Moscow Exchange surged 4 percent to 58.50 rubles, the biggest advancer on the Micex.
Elvira Nabiullina, who took over the central bank on June 24, is offering banks longer and cheaper funds to help funnel cash into the economy needed to boost growth. Russia’s economy grew 1.6 percent in the first three months, the slowest pace since 2009.
Bank Rossii kept its main lending rates unchanged for a 10th month in her first decision as policy makers wait for inflation to drop within the target range of 5 percent to 6 percent.
The dollar-denominated RTS Index (RTSI$) increased 0.9 percent to 1,324.50, snapping eight days of declines.
The volume of shares traded on the Micex was 32 percent below the 30-day average, data compiled by Bloomberg show, while 10-day price swings rose to 9.26. The 50-member Micex’s 5.8 percent decline in 2013 compares with a 0.5 percent drop for India’s benchmark Sensex Index and a 21 percent loss for Brazil’s Ibovespa Index. (IBOV)
The Micex trades at 5.3 times its 12-month estimated earnings, compared with a multiple of 10 for the MSCI Emerging Markets Index.
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