Russia Stocks Advance Fourth Day as Rosneft to Gazprom Climb
Russian stocks increased for the fourth day, poised for the longest winning streak in three weeks, as crude oil and gas producers advanced.
The Micex Index (INDEXCF) gained 0.6 percent to 1,383.53 by 11:24 a.m. in Moscow. OAO Rosneft, Russia’s biggest oil producer, added 1.6 percent to 252.92 rubles. OAO Gazprom, the nation’s natural-gas export monopoly, advanced 1 percent to 133.29 rubles.
Brent crude increased 0.2 percent to $115.14 a barrel in London. Russia receives about 50 percent of its budget revenue from oil and natural gas sales. U.S. jobs data tomorrow may provide clues to changes in Federal Reserve stimulus. Sweden’s Riksbank left its key rate unchanged and the European Central Bank and Bank of England will do the same, according to economist surveys. A U.S. Senate panel authorized a limited military strike in Syria.
“Oil prices remain high because of the Syria strike risks,” Oleg Popov, who manages $1 billion of securities for Allianz Investments, the asset-management arm of Europe’s biggest insurer, said by phone from Moscow. Climbing prices give budget revenues a boost, helping “oil producers and consumer companies alike,” he said.
With U.S. President Barack Obama in St. Petersburg today for a summit of global leaders, his Russian counterpart Vladimir Putin yesterday denounced a potential U.S. attack on Syria as a violation of international law, while Obama told reporters the two countries’ relations have “hit a wall.”
Mail.ru Group Ltd. (MAIL) surged as much as 4.7 percent, adding 3.8 percent to $35.20 in London. Billionaire Alisher Usmanov’s Internet company sold the remaining 14.2 million Facebook Inc. shares it held for more than $525 million, according to today’s statement.
Russian equities have the cheapest valuations among 21 emerging economies tracked by Bloomberg, with shares trading at 3.7 times 12-month estimated earnings, compared with a multiple of 10 for the MSCI Emerging Markets Index. The dollar-denominated RTS Index (RTSI$) added 0.6 percent to 1,306.55.
The volume of shares traded on the Micex was 52 percent below the 30-day average today, while 10-day price swings climbed to 7.275 after falling to the lowest level since July 31 yesterday, data compiled by Bloomberg show.
The Bloomberg Russia-US Equity Index of the most-traded Russian stocks in New York rose 0.7 percent yesterday, while the Market Vectors Russia ETF (RSX), the largest dedicated Russian exchange-traded fund, gained 1.6 percent to $26.28.
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