Bloomberg News

Micex Fluctuates as Urals Tops $117, Greece Curbs Risk Appetite

February 07, 2012

Feb. 7 (Bloomberg) -- Russian stocks moved between gains and losses as the country’s main export oil blend climbed to the highest level in nine months, while Europe’s debt crisis curbed bets on riskier assets.

The 30-stock Micex Index rallied as much as 0.6 percent before slipping 0.2 percent to 1,559.61 as of 1:35 p.m. in Moscow. Preferred shares of OAO Surgutneftegas, an oil producer, added 1.4 percent, while OAO Polyus Gold sank 6 percent. The dollar-denominated RTS Index gained 0.3 percent to 1,631.27.

Urals climbed 1.4 perecent to $117.86 a barrel, headed for its strongest level since May. A benchmark gauge of emerging- market stocks traded little changed today as Greek Prime Minister Lucas Papademos plans to meet the country’s political leaders today to discuss additional measures to secure a second bailout led by the European Union.

“High oil prices may underpin Russian market unless any downbeat news sours investor mood,” Maria Kalvarskaia, who heads equity research at TKB Capital in Moscow, wrote in an e- mailed report today.

OAO Tatneft, the oil producer located in Russia’s Tatarstan region, increased as much as 1.3 percent to 181.60 rubles.

The Micex is up 11 percent this year and trades at 5.8 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 10.4 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 15.6.

--Editors: Alex Nicholson, Linda Shen

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


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