Already a Bloomberg.com user?
Sign in with the same account.
Russian stocks rose as crude oil climbed to the highest in more than three months, boosting appetite for equities in the world’s biggest energy exporter.
The Micex Index (INDEXCF) rose 0.3 percent to 1,451.87 by the close in Moscow, paring yesterday’s 1 percent drop. OAO Gazprom, the country’s natural-gas export monopoly, added 1.3 percent, while OAO Rosneft, Russia’s biggest oil producer, increased 0.7 percent. The companies have a combined weight of about 21 percent in the index.
Oil climbed as much as 0.8 percent to $95.06 a barrel in New York, the highest since May 11, after U.S. stockpiles dropped to the lowest in four months. Concern that Middle East tension would disrupt supplies from a region responsible for about one third of the world’s crude production has helped lift crude prices 7.8 percent this month. Oil and natural gas contribute about 50 percent of Russia’s government budget revenue.
“The market is supported by the elevated price of crude,” Julian Rimmer, a trader at CF Global Trading UK ltd., said by e- mail. At the same time, Russian stock gains have been held back because “there’s a world of difference between a ‘good’ oil price rise predicated on rising demand and a ‘bad’ oil price rise sparked by geopolitical tension or supply-side shocks,” he said.
The Micex trades at 5.4 times estimated earnings and has climbed 3.5 percent this year. That compares with a multiple of 10 times for the MSCI Emerging Markets Index, which has advanced 6.4 percent this year.
To contact the reporters on this story: Alex Nicholson in Moscow at email@example.com; Scott Rose in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com