Russian stocks rose, extending their best weekly gain in a month, as increasing crude oil boosted appetite for equities in the world’s biggest energy exporter.
The Micex Index (INDEXCF) climbed 0.9 percent to 1,494.58 by 3:19 p.m. in Moscow, taking its advance this week to 1.7 percent. OAO Inter RAO UES jumped as much as 9.7 percent, the most since May on a closing basis, before trading 7.8 percent higher at 1.05 kopeks. Energy producers from OAO Rosneft to OAO Gazprom increased more than 0.9 percent.
West Texas Intermediate crude rose 0.6 percent to $94.49, set for its first gain in three weeks, while Brent crude added 0.2 percent to $105.94. Russia receives about half of its budget revenue from oil and natural gas sales.
“Oil has been rebounding and Russia has a strong dependency on the oil price,” Stanislav Kopylov, who helps manage about $3 billion at UralSib Asset Management in Moscow, said by phone.
OAO Rosneftegaz will pay 18.8 billion rubles ($538 million), or 1.308 kopeks per share, for a 13.8 percent stake in Inter RAO, according to a statement on the government website today. That’s a 34 percent premium to yesterday’s close.
OAO Uralkali, the world’s biggest potash producer, rose 3.2 percent to 186.40 rubles. Talks between Uralkali and Chinese buying consortium are expected to continue next week, Argus FMB Potash said in a report today. Uralkali increased 2.1 percent to $27.91 in London.
“The Chinese deal is the most important for Uralkali because of high volumes,” Kopylov said. “Investors are betting they’ll agree on a good potash price.”
The dollar-denominated RTS Index (RTSI$) advanced 0.7 percent to 1,406.49, trimming this year’s retreat to 2.5 percent.
Russian equities have the cheapest valuations among 21 developing-nation economies monitored by Bloomberg, with shares on the benchmark Micex trading at 4.4 times projected 12-month earnings, compared with a multiple of 10 for the MSCI Emerging Markets Index.
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