Russian stocks and the ruble soared the most in almost four months, catching up with gains in global markets in the country’s first day of trading this year.
The Micex Index climbed 2.7 percent to 1,514.82 by 6:45 p.m. in Moscow. The ruble appreciated more than 1 percent against the central bank’s euro-dollar target basket to 34.4722 by the close of the main session of stock trading. Today is the first day of extended ruble trading to 11:50 p.m. Moscow time. OAO Novolipetsk Steel increased 6.9 percent and OAO Mechel, Russia’s biggest coking-coal producer, added 7.1 percent.
Global stocks rallied since U.S. lawmakers agreed to a deal to avert automatic spending cuts and tax increases. Crude, the nation’s biggest export earner, rose to $93.45 a barrel.
“We have to see that jump up for Russia because it has to basically catch up with the other equity markets,” Ilya Kravets, who helps manage $100 million of assets at Daniloff Capital LLC, including Russian stocks, said by phone in New York yesterday.
The ruble strengthened 0.4 percent against the dollar to 30.2825 and jumped 1.6 percent versus the euro to 39.6235. Russia’s dollar-denominated RTS Index added 3.2 percent to 1,576.10. The yield on the government’s ruble-denominated 2027 bond advanced seven basis points to 7.14 percent.
OAO Bashneft, a regional oil producer, jumped 6.5 percent to the highest level since Oct. 9.
The Micex rose 5.2 percent last year and trades at about 5.6 times estimated earnings, the lowest valuation among 21 emerging-market gauges tracked by Bloomberg. The MSCI Emerging Markets Index, which has gained 1.3 percent this year, trades at a multiple of 10.9 times estimated earnings.
The Bloomberg Russia-US Equity Index of the most-traded Russian companies in the U.S. slipped 1 percent yesterday to 101.28, the biggest decline since Dec. 21. The Market Vectors Russia ETF, the largest U.S.-traded exchange-traded fund that holds Russian shares, decreased 1.4 percent to $30.14, the most in two weeks.