Oct. 31 (Bloomberg) -- Russian stocks snapped their worst losing streak since May as oil climbed after U.S. refineries resumed operations in the wake of Hurricane Sandy.
The Micex Index advanced 0.2 percent to 1,425.7 by the close in Moscow, paring an earlier gain of as much as 1 percent. OAO Novatek, Russia’s second-biggest gas producer, gained 2.7 percent. OAO Aeroflot, the nation’s largest airliner, added 2.9 percent, while potash producer OAO Uralkali increased 1.5 percent.
Oil, the country’s main revenue earner, rose as much as 60 cents to $86.28 a barrel in New York as Philadelphia Energy Solutions’ Pennsylvania refinery and NuStar Energy LP’s Paulsboro, New Jersey, plant revived production. The New York Stock Exchange plans to re-open after being shut for two days as the 900-mile wide storm caused flooding and blackouts.
“Markets are in a slightly positive mood as Hurricane Sandy finally eases up and U.S. exchanges open after a two-day break,” UralSib Financial Corp. analysts Slava Smolyaninov and Natalia Berezina wrote in an e-mailed report today.
OAO GMK Norilsk Nickel, the world’s biggest miner of the metal, jumped 1.1 percent to 4,828 rubles after billionaire Vladimir Potanin’s Interros said it’s preparing to file a request with Russia’s Anti-Monopoly Service to boost its stake from 28 percent to 75 percent plus one share.
Interros wants permission in case an “opportunity” arises to increase its holding, Larisa Zelkova, who represents Interros on Norilsk’s board, said by phone.
The Micex trades at 5.4 times estimated earnings after gaining 1.7 percent this year. That compares with a multiple of 10.2 times for the MSCI Emerging Markets Index, which has added 8.6 percent. Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
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