Russian stocks gained for the first time in five days before bond sales in Europe and as the region’s leaders prepare to discuss steps to contain the debt crisis.
The Micex Index (INDEXCF) added 0.6 percent to 1,338.04 by 10:09 a.m. in Moscow. OAO Mobile TeleSystems, Russia’s largest telecommunications operator, led the advance, rising 1.8 percent. OAO Aeroflot, the country’s biggest airline carrier, jumped 1.2 percent after Alexey Navalny, an anticorruption blogger and opposition leader, was elected to the board yesterday.
The MSCI Emerging-Market Index (MXEF) added 0.2 percent to 906.11. Italy and Spain auction securities today and European Union leaders hold a two-day summit starting June 28. Oil, Russia’s biggest export earner, was little changed at $79.13 in New York after paring earlier losses.
“Investors are waiting for the results of the EU summit,” UralSib Capital analysts led by Leonid Slipchenko said in an e- mailed note. “There is quite a lot of uncertainty, which continues to destabilize markets.”
Oil and gas contribute about 50 percent of Russia’s state revenue. Crude fell to the lowest level since October on June 21, tumbling to $78.20.
The Russian Depositary Index (RDXUSD) slid 1.9 percent to 1,430.02 yesterday, the biggest drop since June 8. The dollar-denominated RTS Index added 0.9 percent today to 1,273.33, rising for the first day in five.
Russian stocks trade at 4.8 times estimated earnings, having retreated 4.7 percent this year. That compares with a 1.2 percent drop for MSCI’s emerging-market gauge which trades at 9.3 times projected earnings.
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