Russia Stocks Rise Most in 6 Months as Oil Climbs, Debt Woes Ebb

Bloomberg Jan 12---Russian stocks jumped the most in more than six months as oil, the country’s chief export earner, topped $92 a barrel and ebbing concern Europe’s debt crisis will hurt the global recovery spurred appetite for riskier assets.

OAO Rosneft, Russia’s largest oil producer, added 3.8 percent. OAO Sberbank and VTB Group, the country’s two biggest lenders, both gained more than 3 percent. The 30-stock Micex Index climbed 2.7 percent in its second day of trading this year to 1,759.46 by the 6:45 p.m. close in Moscow, the gauge’s biggest gain since July 6.

Oil advanced after a U.S. government report showed a larger-than-forecast drop in supplies. The euro advanced for a third day versus the dollar as Portugal’s borrowing costs fell at an auction and on speculation European leaders are considering an an expansion of aid for nations struggling to finance their debt.

“Investors are shrugging off concern by Europe debt for this week at least,” said Luis Saenz, London-based director of international sales at brokerage Otkritie Securities Ltd.

Citigroup Inc. upgraded Russia to “overweight” citing “low valuations” and a “benign interest-rate background,” according to a note from the U.S. bank dated Jan. 11.

Geoffrey Dennis, the bank’s New York-based emerging-market strategist, predicts Russian equities will outperform Brazilian stocks as global economic expansion spurs a 30 percent rally in the MSCI Emerging Markets Index this year.

Rostelecom Rally

Copper for delivery in three months climbed 1.1 percent, to $9,617 a metric ton on the London Metal Exchange. Aluminum, nickel, tin, zinc and lead also gained. OAO GMK Norilsk Nickel, Russia’s biggest miner, added 2.9 percent to 7,498.77, its highest close since November 2007.

OAO Rostelecom rallied for a second day after the Vedomosti newspaper reported that Russia’s dominant long-distance phone company plans to acquire cable television and Internet provider NTK.

The shares surged 9.7 percent, the most since October 2009, to 179.1 rubles. The stock climbed 4.2 percent yesterday on the report.