Bloomberg News

Russian Stocks Climb to Two-Year High on Oil, Metals, China

November 01, 2010

Russian stocks climbed to their highest level in more than two years as oil and metals advanced after China’s manufacturing expanded at the quickest pace in six months, boosting the outlook for commodity producers.

OAO Magnitogorsk Iron & Steel jumped 3.7 percent and OAO Novolipetsk Steel increased 2.4 percent. VTB Bank, the country’s second-biggest lender, added 2.2 percent, while oil producer OAO Lukoil gained 1.3 percent. Those movements helped push the Micex Index 0.7 percent higher to 1,533.7 at the 6:45 p.m. close in Moscow, its strongest since July 24, 2008. The dollar- denominated RTS advanced 0.8 percent to 1,600.22, its biggest gain in more than a week.

Oil, Russia’s chief export earner, advanced to a two-week high, gaining as much as 2.6 percent to $83.54 a barrel in New York. Copper climbed as much as 2.1 percent to $8,375 a metric ton on the London Metal Exchange. Aluminum, zinc, lead, nickel and tin also increased. OAO GMK Norilsk Nickel, Russia’s largest miner, gained 0.4 percent to 5,607.23 rubles.

“Russia has an umbilical link to the oil price which is driving stocks higher,” Kingsmill Bond, chief strategist at Troika Dialog, said by phone from London.

Mail.ru Group Ltd., a Russian investor in Facebook Inc., has orders for all the stock in its $876 million London initial public offering close to the top end of the $23.70 to $27.70 price range, two people familiar with the IPO said.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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