Russia Stocks Climb Third Day on Rising Oil, Economy Optimism
Russian stocks climbed for a third day as crude oil advanced and foreign economic data beat estimates, spurring appetite for equities in the world’s biggest energy exporter.
The Micex Index (INDEXCF) rose 0.4 percent to 1,382.24 by 1:09 p.m. in Moscow after jumping the most since Sept. 14 yesterday. OAO Surgutneftegas, an oil producer, climbed 3.5 percent to 27.735 rubles, while its depositary receipts rallied 3.9 percent to $8.745. Utilities increased the most among nine industry groups, adding 2.3 percent on average.
Crude gained for a sixth day, adding 0.2 percent to $91.61 per barrel in New York. Britain’s economy avoided a triple-dip recession in the first quarter as gross domestic product rose 0.3 percent, beating the median forecast of 37 economists in a Bloomberg News survey. Europe is Russia’s biggest trade partner.
“Russia’s situation is affected a lot by what is happening in Europe,” Alexander Kostyukov, an analyst at Veles Capital in Moscow, said by phone. “Our export companies, steelmakers and energy producers, are very dependent on the European economy.”
Moscow United Electric Grid Co. led gains on the Micex, increasing 5.7 percent to 1.3849 rubles. The power company’s net income jumped 5.6 percent to 19 billion rubles ($607 million) last year, it said in a statement today.
OAO Inter RAO UES climbed 3.7 percent to 1.28 kopeks, while OAO Russian Grids, formerly known as MRSK Holding, surged 3.4 percent to 1.211 rubles.
OAO Rostelecom dropped 0.8 percent to 110.79 rubles after Vedomosti reported the state-run phone operator may cut its dividend for 2012 by 45 percent. The company plans to pay 8.2 billion rubles in dividends for 2012, according to the paper, which cited an unidentified official and a company board member.
OAO Severstal, a steelmaker, was upgraded to buy at Deutsche Bank AG, which said a selloff in the Russian steel industry had brought valuations down. The shares increased 2.6 percent to 266.50 rubles.
Russian equities have the cheapest valuations on an estimated price basis among 21 emerging markets tracked by Bloomberg. The measure trades at 5.1 times its 12-month estimated earnings and has lost 6.3 percent this year, compared with a 10.4 multiple for the MSCI Emerging Markets Index (MXEF), which has dropped 2.7 percent in the period.
The number of shares traded on the Micex was 52 percent above its 30-day average, while the gauge’s 10-day price swings subsided to 20.537.
The RTS Volatility Index, which measures expected swings in stock futures, slipped 0.6 percent to 21.60, falling for a third day. The Market Vectors Russia ETF, the largest dedicated Russian exchange-traded fund, jumped 2.4 percent to 26.275 yesterday, while the Bloomberg Russia-US Equity Index (RUS14BN) added 2.6 percent to 92.92.
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