Russian stocks rose from a three-month low, paring the worst week since June, as OAO Novorossiysk Commercial Sea Port to OAO Gazprom jumped and after a technical indicator signaled losses were overdone.
The Micex Index added 1.4 percent to 1,448.67 by the close in Moscow, the most since Nov. 14 and trimming a 2.1 percent drop this week. OAO Sberbank, Russia’s largest lender, increased 1.6 percent, while Novorossiysk rallied 5.1 percent to 2.8883 rubles. OAO Transneft in October boosted its stake in the company to 36 percent from eight, an earnings statement showed today. Gazprom, which has the heaviest weight on the Micex, was among the worst performers this week with a 3.8 percent decrease. The stock rose 1.8 percent to 137.46 rubles today.
Shares of Russia’s biggest natural gas producer have declined amid political protests in Ukraine, a key route for shipments to the European Union. Russian stocks slumped 2 percent in November, the worst month since May, amid concern the nation’s economy is foundering. The benchmark’s 14-day relative strength index dropped to 30.03 yesterday, the lowest since April and close to the 30 level that signals to some analysts that a security is poised to rebound.
“Today is a good day after a long streak of declines,” Oleg Popov, who manages $1 billion of securities for Allianz Investments, said by phone from Moscow. “Investors have been pulling money out of emerging markets.”
Emerging-market stocks rose today, trimming the first weekly drop in a month, as signs the U.S. economy is recovering outweighed concern the Federal Reserve will push forward plans to taper stimulus. Russia cut its 2014 economic growth forecast to 2.5 percent from 3 percent, Interfax reported this week, citing Economy Minister Alexei Ulyukayev. This year’s inflation forecast was raised to 6.2 percent from 6 percent, the news service reported.
Russian inflation accelerated more than economists forecast in November, with consumer prices rising 6.5 percent from a year earlier, the Federal Statistics Service in Moscow said yesterday. That’s the fastest pace in three months and leaves less room for central bank Chairman Elvira Nabiullina to lower borrowing costs to stimulate the stalling economy.
Russia-dedicated stock funds lost less than $90 million in the week ended Dec. 4, according to an e-mailed note from UralSib Capital, which cited EPFR Global data. Redemptions reached $3.52 billion this year through Nov. 29, according to EPFR Global, the most since the Boston-based research firm started tracking flows in 1996.
OAO Mobile TeleSystems rose 4.1 percent to 317.55 rubles, while OAO MegaFon jumped 2.9 percent to 1,070 rubles. Analysts from JPMorgan Chase & Co. and Raiffeisen Bank International AG expect a boom in data traffic that will trigger stock rallies in MTS, Russia’s largest wireless carrier, and VimpelCom Ltd., which control the largest mobile phone operators in Ukraine.
The dollar-denominated RTS Index gained 2.1 percent to 1,390.61. Russia’s equities have the cheapest valuations among 21 emerging-market economies monitored by Bloomberg, with shares on the benchmark trading at 4.2 times projected 12-month earnings, compared with a multiple of 10.5 for the MSCI Emerging Markets Index.