Russian Stocks Head for First Weekly Gain in Five on $110 Brent

Russian stocks climbed for a second day, headed for their first weekly gain in five, as crude prices advanced and Chinese data boosted mining companies.

The Micex Index (INDEXCF) rose 0.1 percent to 1,398.01 rubles as of 1:25 p.m. in Moscow. The gauge is set for five-day increase of 1.3 percent. OAO Rosneft, Russia’s biggest oil producer, added 1.2 percent, while OAO Raspadskaya, a coal producer, traded up 2.8 percent.

Brent crude increased 0.1 percent to $110 a barrel in London. The oil and gas industries contribute about 50 percent of Russia’s state revenue. Chinese foreign direct investment rose 24 percent year-on-year to $9.41 billion in July, data showed today.

“Russia is still bolstered by the relatively high price of oil,” Julian Rimmer, an equities trader at CF Global Trading in London, said by e-mail. Chinese data have “improved sentiment among metal and mining plays and so, along with $110 Brent, this underpins a decent chunk of the Russian market,” he said.

Companies on the Micex trade at 5.3 times average 12-month estimated earnings, compared with a multiple of 9.9 for the MSCI Emerging Markets Index. The volume of shares traded on the Micex was 30 percent below the 30-day average, data compiled by Bloomberg show.

Rosneft, which has a 4.8 percent weighting in the stock measure, advanced for a third day. The company’s Chief Executive Officer Igor Sechin has acquired shares in the company and has a 0.0075 percent holding in the state-run company, according to a regulatory filing today.

The Bloomberg Russia-US Equity gauge gained 1.3 percent to 92.05 yesterday. The Market Vectors Russia ETF (RSX), the largest exchange-traded fund dedicated to Russian equities, increased 1.9 percent to $26.58. The RTS volatility index, which measures expected swings in the stock futures, retreated 0.9 percent today.

To contact the reporter on this story: Alex Nicholson in Moscow at anicholson6@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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