Bloomberg News

Russian Stocks Climb First Day in Seven on China Easing Wagers

May 10, 2012

Russian stocks rose for the first time in seven days on speculation China will ease monetary policy, boosting demand for commodity producers’ shares.

The 30-stock Micex Index (INDEXCF) rose 1.8 percent to 1,408.99 by 10:44 a.m. in Moscow, paring a 6.1 percent drop in the past six days. OAO Magnitogorsk Iron & Steel, billionaire Victor Rashnikov’s steelmaker, rallied 3.8 percent 11.259 and OAO Raspadskaya, a Russian coal producer, gained 2.6 percent 85.59. United Co. Rusal, the world’s biggest aluminum producer, lost 2.1 percent 195.37. The dollar-denominated RTS Index (RTSI$) rose 0.3 percent to 1,489.39.

China’s exports rose less than estimated in April, making the government more likely to ease policy, Bloomberg economist Michael McDonough said. Copper, alumminum and nickel rose on the London Metal Exchange, while crude pared a drop of as much as 0.5 percent to trade little changed at $96.70 a barrel in New York.

“Today’s data gives the market hope that the Chinese government will introduce monetary easing,” Renat Malin, portfolio manager at Kapital Asset Management LLC who manages $3 billion in assets, said by phone from Moscow. “China is very important for Russia’s economy and for commodity demand.”

Russia, the world’s biggest energy exporter and the largest producer of nickel and palladium, received almost 50 percent of budget revenue from oil and gas sales last year, according to government estimates.

The Micex was closed yesterday for the Victory Day holiday.

To contact the reporter on this story: Ksenia Galouchko in New York at kgalouchko1@bloomberg.net

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


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