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Russia Stocks Climb 4th Day on Europe as Gazprom, Novatek Rally

Russian stocks headed for their longest winning streak in a month on better-than-expected European data and as OAO Gazprom and OAO Novatek, the country’s biggest natural-gas producers, advanced.

The benchmark Micex Index rose 0.4 percent to 1,413.17 rubles as of 2:28 p.m. in Moscow, the fourth day of gains and a three-week high. Gazprom, Russia’s natural-gas export monopoly, added 1.2 percent to 133.74 rubles, while Novatek gained 1.4 percent to 365.76 rubles. The dollar-denominated RTS Index increased 0.3 percent to 1,342.97.

Gross domestic product in the 17-nation euro area expanded 0.3 percent in the second quarter, emerging from a record-long recession and beating the median estimate of 0.2 percent in a Bloomberg News survey of 41 economists. Europe is Russia’s largest trade partner. Gazprom and Novatek, which have a combined weighting of 21 percent in the Micex, were the biggest advancers in the gauge.

Russian equities are “broadly positive on the back of European data,” Ariel Chernyy, an analyst at Allianz Investments in Moscow, said by phone. “The RTS and Micex are always the first to react to positive global data.”

OAO Lukoil, the nation’s biggest non-state crude producer, advanced 0.6 percent to 1,960.20 rubles, erasing an earlier drop of 0.5 percent. The company has a 14 percent weighting in the Micex.

Crude snapped a three-day rising streak after an industry report showed fuel stockpiles increased in the U.S., the world’s biggest oil consumer. Brent oil fell as much as 0.7 percent to $109.05, retreating from the highest close since April. Russia receives about half of its budget revenue from the oil and natural-gas industries.

The Bloomberg Russia-US Equity Index of the most-traded stocks in New York rose 1.2 percent to 92.10 yesterday, advancing for the fourth day. The RTS Volatility Index, which measures swings in the stock futures, fell 0.4 percent today.

To contact the reporter on this story: Valeriya Ivashchenko in London at vivashchenk1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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