BLBG:Micex Index Advances to Two-Week High as Commodity Prices Rise
Russian stocks (INDEXCF) reached a two-week high as prices for oil, Russia’s biggest export, and other commodities advanced.
The Micex Index of 30 shares gained 0.6 percent to 1,418.73 at the start of trading in Moscow, adding to yesterday’s 2 percent rally. The RTS Index of dollar-measured trading rose 0.8 percent to 1,406.84.
“Investor focus is shifting temporarily from Europe’s debt problems to indicators of improving economic growth,” said Chris Weafer, chief strategist at Troika Dialog, Russia’s oldest investment bank. “Oil continues to rally,” and that’s good for Russia, Weafer said in a research note.
OAO Gazprom, the world’s biggest gas supplier and owner of Russia’s fifth-biggest oil producer, rose 0.9 percent to 173.95 rubles after saying yesterday it plans to cut spending and boost dividends next year, sparking a 3.9 percent gain, the most in seven weeks. OAO Rosneft and OAO Lukoil, the largest oil companies, each gained more than 0.6 percent.
Oil climbed for a third day in New York as investors bet that fuel demand may increase amid signs of an economic recovery and declining stockpiles in the U.S., the world’s biggest crude consumer. Crude for February delivery rose as much as $1.20 to $98.44 a barrel in New York.
Rusal, Magnitogorsk
Crude advanced after the U.S. Commerce Department said yesterday that home builders broke ground in November on more houses than at any time in the past 19 months, with housing starts increasing 9.3 percent to an annual rate of 685,000, the highest since April 2010.
“Economic data is painting a better global growth scenario and that’s clearly feeding into firmer oil prices,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty in Sydney.
United Co. Rusal, the world’s biggest aluminum producer, led gains in the Micex, climbing 2.3 percent, to 204.90 rubles.
OAO Mechel (MTLR), the largest supplier of coal to steelmakers, increased as much as 3.3 percent to 284.90 rubles and traded at 279 rubles at 10:22 a.m. OAO Magnitogorsk, Russian billionaire Victor Rashnikov’s steel producer, rose 1.1 percent to 12.90 rubles.
The Micex, which has lost 16 percent this year, trades at about 4.8 times estimated earnings compared with about 10.1 times for Brazil’s Bovespa index, 10.6 times for the Shanghai Composite Index (SHCOMP) and 13.4 times for the BSE India Sensitive Index, according to data compiled by Bloomberg.
To contact the reporter on this story: Brad Cook in Moscow at Bcook7@bloomberg.net
To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net
