Dec. 13 (Bloomberg) -- Russian stocks rallied for the first day in three as oil gained and investors bet the market is oversold after the biggest two-day drop since September.
The 30-stock Micex Index gained 0.6 percent to 1,358.49 by 2:53 p.m. in Moscow, after retreating 7.3 percent in the previous two days. OAO Sberbank, Russia’s biggest lender, increased 1 percent. Coal-maker OAO Mechel jumped 2.1 percent while OAO Transneft, the nation’s oil pipeline monopoly, gained 2 percent. The dollar-denominated RTS Index rose 0.6 percent to 1,371.54.
The Micex, which has lost 20 percent this year, trades at 4.6 times estimated earnings compared with 10 times for Brazil’s Bovespa index, 10.9 times for the Shanghai Composite Index and 13.7 times for the BSE India Sensitive Index, according to data compiled by Bloomberg. Crude, Russia’s main export earner, gained 0.7 percent to $98.48 a barrel.
“After such a big market fall last week and yesterday, we are overdue a bounce,” Chris Weafer, chief strategist at Troika Dialog in Moscow, wrote in an e-mailed report today. “Even of the dead-cat variety.”
The Micex tumbled 3.3 percent yesterday after Moody’s Investors Service said it will review the credit ratings of euro-region countries and as Billionaire Mikhail Prokhorov said he will run against Vladimir Putin in March’s presidential poll.
OAO Rosneft, the country’s biggest oil producer, rose 1.6 percent and OAO Lukoil, its smaller rival, added 1.7 percent. Oil and natural gas contribute about 40 percent of Russia’s budget revenue and 17 percent of gross domestic product.
Twelve Years of Risk
Tens of thousands of Russians took to the streets on Dec. 10 to protest the results of a parliamentary contest that observers from the U.S. and Europe said was neither free nor fair. Prokhorov, 46, Russia’s third-richest man with a fortune Forbes magazine put at $18 billion, said he plans to build grassroots support and that he opposes “revolution” and “populism.”
“We have only had a week of markets going down 10 percent,” Kingsmill Bond, Citigroup’s chief strategist for Russia, said in an interview in Moscow today. “Before, we had 12 years of non-political risk in Russia so I suspect there are still a lot of investors who remain nervous about the coming months.”
-- Editors: Alex Nicholson, Linda Shen
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