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Russian Stocks Rise First Time in 4 Days as Dubai Concern Ebbs

 

Nov. 27 (Bloomberg) — Russian stocks rose for the first time in four days, erasing earlier losses as concern eased about a possible default by Dubai.

OAO GMK Norilsk Nickel, the country’s biggest mining company, and oil company OAO Lukoil gained more than 2 percent. The 30-stock Micex Index gained 1.4 percent to 1,286.04, trimming this week’s decline to 3.6 percent.

Stocks tumbled yesterday, sending the Micex to the lowest closing level in three weeks, amid concern that Dubai’s proposal to delay debt payments may trigger the biggest sovereign default since Argentina in 2001. Stocks rallied in Europe today as that concern abated.

“Everything has calmed down a bit,” said Alexei Moiseev, managing director of Renaissance Capital in Moscow by telephone.

The Micex has more than doubled this year as the global economic recovery sent oil and metals prices higher, boosting earnings outlooks for producers. Russian Finance Minister Alexei Kudrin said Nov. 25 that the nation’s stock market, which has more than doubled this year, is “overheated” and forecast oil prices will decline in 2010.

Norilsk climbed 2.8 percent to 3,974.16 rubles. Lukoil, Russia’s second-biggest oil company, added 2.2 percent to 1,701.34 rubles.

OAO Transneft, the state pipeline monopoly, rallied the most in the Micex, jumping 4.5 percent to 21,875.45 rubles.

Russia will suspend duties on crude oil exports from 13 fields in East Siberia next month in an effort to boost production for Asian markets. The fields include OAO Rosneft’s Vankor and OAO Surgutneftegaz’s Talakan, the government said today on its Web site.

Oil producer Surgutneftegaz rose 1.3 percent to 26.124 rubles…read more at the Bloomberg

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