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Micex Pares Biggest Drop in Two Months on Oil Near 9-Month High

22 Feb 2012

Russia’s benchmark equities index pared its sharpest drop in two months, as oil, the country’s main export earner, traded nead a nine-month high.

The 30-stock Micex advanced 0.4 percent to 1,565.62 by 11:09 a.m. in Moscow, after retreating 1.3 percent yesterday, the most since December. OAO Surgutneftegas, an oil producer, added 1.2 percent. OAO Novatek (NVTK), Russia’s largest non-state gas producer, jumped 1.3 percent. The dollar-denominated RTS Index (RTSI$)increased 0.5 percent to 1,663.22.

Oil for April delivery was at $106.17, down 8 cents, in electronic trading in New York, trading near the highest level in nine months after the International Atomic Energy Agency said talks over Iran’s nuclear program failed. Urals crude, Russia’s main export blend, climbed 0.5 percent yesterday to $121.14 a barrel, the most since April.

OAO Sberbank (SBER), Russia’s biggest lender, rose 0.3 percent to 96.95 rubles. The ruble appreciated 0.2 percent to 29.7675 against the dollar, the strongest level in two weeks.

After dropping 6.5 percent in December, the Micex (INDEXCF) is up 12 percent this year and trades at 6.1 times analysts’ earnings estimates for member companies. Brent oil’s 14 percent gain in the same period has boosted the allure of the nation’s stocks, the cheapest among 21 emerging markets tracked by Bloomberg.

Brazil’s Bovespa index, which is valued at 10.7 times estimated earnings, has climbed 17 percent, according to data compiled by Bloomberg. The Shanghai Composite Index trades at 9.9 times estimated earnings, and the BSE India Sensitive Index has a ratio of 16.2.