Shares of large Russian companies have risen in price after falling a month ago. The growth of Chinese production was the reason for the favorable outlook in the metallurgical and oil industry in Russia.
So today the MICEX index added 0.6 percent to 1,372.17 rubles after falling 0.8 percent last month. Shares in Mechel OAO, Russia's largest producer of coal for metallurgy, rose 1.3 percent to RUB 98.10, the highest level since August 26. Securities of oil-producing OJSC Bashneft rose in price by 1.8 percent to 1,929.70 rubles after the largest Swiss financial conglomerate UBS AG raised its yield forecast.
According to official statements, the Chinese economy is currently strengthening after the recession observed in the last two quarters. Its maximum growth has now been recorded over the past 16 months.
The MICEX index lost 2 percent last week after Russia cut its forecast for economic growth in 2013 for the second time in a year. It is worth noting that the country's budget consists of about half of the revenues from the oil and gas industry.
“Russian commodity companies will benefit if the growth of the Chinese economy recovers,” concluded Oleg Popov, who manages the $ 1 billion securities assets of a large investment group Allianz Investments.
Sberbank, Russia's largest creditor, also gained 1.7 percent to 89.62 rubles, the highest since August 22. American markets did not open today due to a public holiday (Labor Day).
