Russian stocks led emerging-market peers, gaining the most in seven months, as crude oil, the nation’s chief export, and metals advanced.
The Micex Index added 2.8 percent to 1,377.01 by the close in Moscow, the most since Sept. 14. OAO Inter RAO UES climbed 6.1 percent to 1.22 kopeks, while OAO RusHydro jumped 9.6 percent to 53.68 kopeks, the most since May 2010. OSO Russian Grids, formerly known as MRSK Holding, surged 10 percent to 1.171 rubles.
Russian equities have the cheapest valuations on an estimated price basis among 21 emerging markets tracked by Bloomberg. Utilities rallied the most among nine industry groups, adding 6.8 percent on average. Crude oil, Russia’s chief export earner, gained for a fifth day, adding 1.1 percent to $90.17 per barrel in New York. Most metals rose in London.
“The commodity prices are moving the Russian market,” Stanislav Kopylov, who helps manage about $3.4 billion at UralSib Asset Management in Moscow, said by phone. “Power stocks are leading the gains, foreign funds are buying them on low valuations.”
The S&P GSCI Spot Index of commodities added 0.7 percent. The dollar-denominated RTS Index rose 3.1 percent to 1,375.40, the most since Jan. 8.
VTB Group, Russia’s second-biggest lender, jumped as much as 4 percent before closing up 0.2 percent at 4.56 kopeks. Its depositary receipts added 0.2 percent to $2.85 in London after rising as much as 5.2 percent. VTB’s net income fell less than analysts forecast last year, dropping to 85.8 billion rubles, according to a company statement today.
The Russian Depositary Index increased 2.9 percent, led by OAO Tatneft, which rose 6.7 percent to $36.09. Tatneft, regional oil producer, jumped 7.4 percent to 189.82 rubles in Moscow.
OAO Gazprom, Russia’s biggest company and natural gas export monopoly, added 3.6 percent to 124.51 rubles, the most since Sept. 14. The GDRs rose 3.8 percent to $7.84.
The number of shares traded on the Micex was 94 percent above its 30-day average, while the gauge’s 10-day price swings surged to 21.299.
The measure trades at 5.1 times its 12-month estimated earnings and has lost 6.6 percent this year, compared with a 10.3 multiple for the MSCI Emerging Markets Index, which has dropped 3.4 percent in the period.
The RTS Volatility Index, which measures expected swings in stock futures, slipped 8.2 percent to 21.72, falling for a second day. The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, jumped 2.5 percent to 26.30, while the Bloomberg Russia-US Equity Index added 1.8 percent to 92.17.