Russian (INDEXCF) equities climbed for the first day in three as OAO Gazprom, the nation’s largest company, gained after earnings beat estimates and investors bet demand for gas will increase.
The Micex Index added 0.6 percent to 1,523.74 by the close in Moscow. Of the 50 stocks in the gauge, 38 advanced, one was unchanged and 11 retreated. Gazprom, Russia’s natural-gas export monopoly, added 0.8 percent. OAO Mechel (MTLR), a coking coal maker, increased 2.9 percent, the second-biggest advancer.
Gazprom’s third-quarter profit doubled, beating analyst estimates, after it recognized a foreign-exchange gain compared with a loss the previous year. The stock has the largest weighting in the Micex at 14.8 percent.
“The market is in a good mood today, the appetite for risk is improving,” Mark Rubinstein, head of research at IFC Metropol, said by phone from Moscow. “Gazprom is the biggest company on the market, and at these levels looks attractive. People are buying it on expectations of increased demand from Europe during winter.”
Gazprom’s net income in the third quarter expanded to 305 billion rubles ($10.1 billion) from 152 billion rubles a year earlier, the Moscow-based company said today on its website. That compared with an average estimate of 291 billion rubles from 10 analysts surveyed by Bloomberg. Revenue rose 18 percent to 1.12 trillion rubles.
The amount of shares traded on the Micex was 26 percent below the 10-day average, data compiled by Bloomberg show. The RTS Index (RTSI$), Russia’s dollar-denominated equity gauge, increased 0.9 percent to 1,585.44. The Bloomberg Russia-US stocks measure gained 0.9 percent to 102.62.
The Market Vectors Russia ETF (RSX:US), the largest dedicated Russian exchange-traded fund, rose 0.8 percent to $30.14. The RTS Volatility Index, which measures expected swings in the stock futures, declined 0.8 percent to 21.35 points.
Standard & Poor’s GSCI Index gained 0.6 percent to 657.00. All metals rose on the London Metal Exchange, including copper, nickel and tin. Crude oil increased 1.2 percent to $95.32 in New York, a four-month high.
Russian stocks extended their gains, rising as much as 0.7 percent, amid better-than-forecast U.S. initial jobless claims and housing data.
Consumer services and telecom stocks led the gains among nine industry groups on the Micex, adding at least 1.3 percent on average. The benchmark index’s 10-day volatility was at 17.18, trading near the highest level since Nov. 23.
OAO Aeroflot, Russia’s biggest airline carrier, rose 3.1 percent to 49.81 rubles, the biggest gainer on the Micex. The amount of shares traded was about 3 million, equivalent to 1.4 times the three-month average.
OAO Rosneft, the nation’s largest oil producer, slid 1.3 percent to 258.55 rubles, the second-biggest decliner. The amount of shares traded was 6.7 million, equivalent to 68 percent of the three-month average.
The Micex gauge trades at about 5.6 times estimated earnings and has added 3.3 percent this year. That compares with a multiple of 10.8 times for the MSCI Emerging Markets Index, which has gained 1.7 percent this year.
Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
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