Russian (INDEXCF) equities moved between gains and losses as crude oil, the country’s main export earner, traded near a one-week high, while Federal Grid Co. sank.
The Micex Index traded down 0.2 percent at 1,369.10 by 12:20 p.m. in Moscow. Oil companies climbed as OAO Rosneft, Russia’s biggest producer, added 1 percent. Federal Grid, the nation’s monopoly for high-voltage power transmission, slid as its adjusted net income dropped in the first half.
Oil rose 0.1 percent to $86.39 in New York, trading near the highest level in more than a week after Israel attacked the Gaza Strip. Russia receives about 50 percent of its budget revenue from oil and natural gas sales. In China, the official Xinhua News Agency announced Xi Jinping had replaced Hu Jintao as head of the Chinese Communist Party.
The number of shares traded on the Micex was 23 percent above its 10-day average, according to data compiled by Bloomberg.
MSCI Inc. lifted OAO Sberbank’s weighting 2.5 percentage points to 14.4 percent in the semi-annual rebalancing of its Russia Index, according to a report on its website.
The increase may trigger inflows of about $213 million in passive fund inflows, according to a VTB Capital note. MSCI made no additions or deletions from its Russia Index, it said. All changes will come into effect on Dec. 3, according to MSCI.
The Micex trades at 5.3 times estimated earnings after falling 2.1 percent this year. That compares with a multiple of 10 times for the MSCI Emerging Markets Index, which has added 7.2 percent.
VTB, $3 Billion
Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
VTB Group, Russia’s second-biggest bank, plans to raise as much as $3 billion selling new shares in the first half of 2013, Chairman Andrei Kostin said yesterday in an interview. The shares rose 0.1 percent to 5.08 kopeks in Moscow.
The lender will probably choose advisers for the sale by the end of this year and will “definitely” include U.S. banks, Kostin said.
RTS dollar-denominated Index rose less than 0.1 percent to 1,368.30.
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