Bloomberg News

Russia Stocks Surge to 5-Month High on Oil Gains, China Economy

February 01, 2012

Feb. 1 (Bloomberg) -- Russian stocks jumped to their highest in five months as oil rallied after Chinese manufacturing unexpectedly rose, stoking appetite for equities in the world’s biggest energy exporter.

The 30-stock Micex Index gained 1.7 percent to 1,539.36 by the close in Moscow, its strongest since Sept. 8. OAO Rosneft, the country’s biggest oil producer, advanced 1 percent and OAO Sberbank, Russia’s largest lender, surged 2.6 percent. The dollar-denominated RTS Index increased 1.4 percent to 1,599.56.

Crude, Russia’s main export earner, increased as much as 1 percent to $99.49 a barrel after Chinese manufacturing rose in January as the world’s second-biggest economy withstood weaker exports driven by the euro-area debt crisis and a government- induced property slowdown. The data helped offset a drop in U.S. consumer confidence yesterday.

“China numbers were a positive surprise for the Russian market,” Doug Rohlfs, an international salesman at UralSib Financial Corp., wrote in e-mailed comments. “It helps balance out the lousy consumer confidence numbers from the U.S. yesterday.”

Gazprom, the state-controlled gas export monopoly, gained 0.9 percent to 185.7 rubles. The company said third quarter- profit fell 4.4 percent to 152 billion rubles ($5 billion) from 159 billion rubles a year earlier as the ruble weakened, leading to a foreign exchange loss. That missed the average estimate of 154 billion rubles in a Bloomberg survey of 12 analysts.

The Micex is up 9.8 percent this year and trades at 5.9 times analysts’ earnings estimates for member companies.

The gauge retreated 17 percent in 2011, compared with an 18 percent drop for Brazil’s Bovespa index, which is valued at 10 times estimated earnings according to data compiled by Bloomberg. The Shanghai Composite Index trades at 9.4 times estimated earnings, and the BSE India Sensitive Index has a ratio of 15.2.

--Editors: Alex Nicholson, Linda Shen

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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