Russian equities climbed for a third day to the highest in almost a month as oil, the nation’s chief export earner, rose and Chinese economic data stoked investor appetite for riskier assets.
The Micex Index added 1.1 percent to 1,421.97 by the close in Moscow, the strongest level since Nov. 7. Financial, telecom and oil gas company stocks rose at least 1.1 percent on average. OAO Tatneft, a regional oil producer, increased 1.8 percent, while OAO Novatek, the largest independent natural-gas producer, rose 1.9 percent. OAO Mobile TeleSystems, Russia’s biggest phone operator, climbed 2.1 percent. Russia’s dollar-denominated RTS Index (RTSI$) increased 1.1 percent to 1,451.69.
Oil rallied as much as 1.6 percent to $90.33 a barrel in New York, the highest level in six weeks. Russia receives about half of its budget revenue from the oil and natural gas industry. A manufacturing gauge in China rose to a seven-month high in November, data released Dec. 1 showed.
“Chinese manufacturing data was a positive surprise,” Aleksei Belkin, who manages about $400 million in equities as chief investment officer at Kapital Asset Management LLC, said by phone.“We’re expecting to see rising investor demand for riskier assets and especially Russia as the end of the year approaches.”
The Micex declined as much as 0.2 percent earlier as Russia’s Purchasing Managers’ Index eased to 52.3 after rising to 52.9, HSBC Holdings Plc said.
United Co. Rusal, the world’s largest aluminum producer, fell as much as 3.6 percent, the biggest decliner on the index, before the London Arbitrage Court starts hearing the company’s claim against Vladimir Potanin’s Interros Holding about the alleged breach of a 2008 agreement on board representation at OAO GMK Norilsk Nickel today. Norilsk dropped 0.3 percent to 4,809 rubles.
Standard & Poor’s GSCI Index of Commodities gained 0.9 percent to 655.70. Most metals on the London Metal Exchange rose, including tin and nickel. The Russian Depositary Index (RDXUSD) increased 1.1 percent to 1,634.27.
OAO Gazprom, Russia’s largest company and natural gas export monopoly, climbed 1.6 percent to 140.99 rubles.
The Market Vectors Russia ETF (RSX:US), the largest dedicated Russian exchange-traded fund, rose 1.2 percent to $27.84 on Nov. 30 to leave it little changed in the month. The RTS Volatility Index, which measures expected swings in futures, slipped 0.6 percent to 22.22 points.
The Micex trades at 5.3 times estimated earnings after adding 1.4 percent this year. That compares with a multiple of 10.3 times for the MSCI Emerging Markets Index, which has added 9.9 percent.
Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
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