Russian stocks rose for the first time in four days as crude oil gained and better-than-expected Chinese data offset a drop in local manufacturing, stoking appetite for shares in the world’s biggest energy exporter.
The benchmark Micex Index increased 1.7 percent, the most in three weeks, to close at 1,398.46 in Moscow. OAO Sberbank, Russia’s largest lender, added 1.6 percent to 96.77 rubles. OAO Moscow Exchange jumped 6.9 percent to a record 60.12 rubles.
Crude climbed 1.2 percent to $108.99 in London. A Chinese government gauge of purchasing managers topped forecasts and showed expansion. Russian manufacturing fell to the lowest since December 2009 in July, marking the first contraction in almost two years, according to HSBC Holdings Plc. The U.S. Federal Reserve pledged yesterday to continue stimulus. The European Central Bank and the Bank of England left interest rates unchanged today.
“The key driver of the day is positive global economic data and realization that both the Fed and the ECB will maintain their easing programs,” Slava Smolyaninov, an analyst at UralSib Capital, said by phone from Moscow. “Oil is trading at a comfortable level for Russia.”
Russian equities trade at the cheapest valuations based on estimated earnings among 21 emerging economies tracked by Bloomberg.
Elvira Nabiullina, who took over the central bank on June 24, is offering banks longer and cheaper funds to help funnel cash into the economy to boost growth. Russia’s gross domestic product grew 1.6 percent in the first three months, the slowest pace since 2009.
The dollar-denominated RTS Index increased 1.4 percent to 1,331.71, snapping eight days of declines.
The volume of shares traded on the Micex was 38 percent below the 30-day average, data compiled by Bloomberg show, while 10-day price swings rose to 12.31. The 50-member Micex’s 5.2 percent decline in 2013 compares with a 0.6 percent drop for India’s benchmark Sensex Index and a 20 percent loss for Brazil’s Ibovespa Index.
The Micex trades at 5.3 times its 12-month estimated earnings, compared with a multiple of 10.7 for the MSCI Emerging Markets Index.