Russian stocks gained for the first time in three days, extending their weekly increase, as power and metal stocks climbed.
The Micex Index (INDEXCF) added 0.4 percent to 1,499.34 by 11:09 a.m. in Moscow, set for a 0.4 percent weekly advance. Utilities, including Federal Grid Co., led gains. OAO Magnitogorsk Iron & Steel rose 0.9 percent to 7.937 rubles and OAO Novolipetsk Steel increased 0.7 percent to 53.56 rubles.
The Micex pared its steepest slump in a week yesterday after the Federal Reserve signaled it may reduce stimulus soon. Russia-dedicated equity funds had $130 million in outflows in the week ended Nov. 20, the fourth week of redemptions, UralSib Capital said in an e-mailed note today.
“After a small correction yesterday, the stock market is bouncing back up,” Sergey Kucherenko, who manages about $50 million in Russian equities at OAO Nomos Bank in Moscow, said by phone.
The RTS Index (RTSI$) gained 0.7 percent to 1,436.33. The country’s equities have the cheapest valuations among 21 emerging economies monitored by Bloomberg, with shares on the Micex trading at 4.3 times projected 12-month earnings, compared with a multiple of 10.5 for the MSCI Emerging Markets Index.
“Next year the market will take until March to decide whether to rally or to drop, we’ll see fluctuations before that,” Nomos Bank’s Kucherenko said.
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