BLBG:Russian Stocks Head For Biggest Gain In Week As Crude Oil Rises
Russian stocks headed for the biggest advance in a week as crude oil, the nation’s chief export earner, gained and investors awaited a speech today by Federal Reserve Chairman Ben Bernanke.
The Micex Index (INDEXCF) climbed 0.2 percent to 1,432.21 by 10:43 a.m. in Moscow, poised to gain the most since Aug. 23. The benchmark rallied 1.8 percent this month. OAO MRSK Holding increased 1.4 percent, while OAO Novatek, Russia’s second- biggest natural-gas producer, added 0.8 percent as the board recommended raising the first-half dividend. OAO Raspadskaya lost 0.2 percent.
Crude oil, Russia’s chief export earner, rose 0.2 percent to $94.79 in New York, increasing for the first time in three days and bringing the monthly advance to 7.6 percent. Oil and gas contribute about 50 percent to Russia’s state revenue. Brent crude climbed 0.2 percent to $112.85. Bernanke may provide a signal for additional stimulus measures in his address at a symposium in Jackson Hole, Wyoming, today.
“The regular data flow today, including German retail sales and US factory orders, will be overshadowed by Bernanke’s Jackson Hole speech, which may offer clues to the Fed’s next plans,” Alfa Bank analysts led by Peter Szopo said in an e- mailed research note.
The dollar-denominated RTS Index (RTSI$) increased 0.3 percent to 1,387.91, the first gain in six days.
The Micex trades at 5.3 times estimated earnings and has rallied 2.2 percent this year. That compares with a multiple of 9.9 times and a 3 percent advance for the MSCI Emerging Markets Index.
Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
