Russia’s Micex Index Advances for Third Day on Rate Cut WagersAlex Nicholson
Russian stocks rose for a third day as optimism central banks will continue policies to revive economic growth boosted riskier, emerging-market shares.
The Micex Index added as much as 0.2 percent before trading up 0.1 percent at 1,414.69 as of 1:17 p.m. in Moscow. OAO Gazprom, Russia’s natural-gas export monopoly, gained 0.9 percent to 130.45 rubles, while OAO Sberbank, the country’s largest lender, rose 0.8 percent to 103.19 rubles.
The MSCI Emerging Markets Index headed for the highest close since March 13. European Central Bank President Mario Draghi said yesterday that further interest-rate cuts are possible after reducing them to a record low last week. The Reserve Bank of Australia lowered its main rate by a quarter percentage point to 2.75 percent today.
Russian equities have the cheapest valuations among 21 emerging markets tracked by Bloomberg. The Micex trades at 5.3 times 12-month estimated earnings and has lost 4.1 percent this year, compared with 11 times for the MSCI Emerging Markets Index, which has dropped 0.6 percent in the period.
Oil traded down 0.5 percent at $95.73 dollars per barrel in New York, before government data that may show U.S. stockpiles rose from an 82-year high. Russia’s crude and natural gas industries provide about 50 percent of the state’s budget revenue.