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Bloomberg 17.04.2014 Yuri Selyandin's commentary "Russia’s Micex Climbs Second Day Before Geneva Talks, Putin Q&A"
Russian stocks rose for a second day before diplomatic talks in Geneva aimed at defusing the crisis in Ukraine, while investors awaited comments from President Vladimir Putin.
The Micex Index (INDEXCF) added 0.9 percent to 1,333.91 at 10:52 a.m. in Moscow. OAO Gazprom, the nation’s natural-gas export monopoly, gained 1 percent to 130.30 rubles. OAO Rosneft, the country’s largest oil producer, also increased 1 percent.
The stock index trimmed its weekly drop to 2.1 percent before top diplomats from Ukraine and Russia meet today for the first time since clashes erupted in Ukraine’s restive east. U.S. President Barack Obama vowed that Russia will face increasing economic penalties unless Putin backs away from supporting separatist militias in Ukraine and pulls Russian troops from the border. Putin will answer questions from citizens at an annual question and answer session today.
“Talks are better than no talks,” Yuri Selyandin, a fund manager who helps oversee about $2 billion at GHP Group in Moscow, said by phone. “The sides will announce their positions and hopefully come closer to an agreement. The market is waiting for the comments from the meeting and news from Ukraine, as well as from Putin’s speech.”
Tension intensified over the weekend after clashes between Ukrainian security personnel and separatists who have seized police and government buildings in the country’s east.
Equities on the Micex trade at the cheapest valuations among 21 developing countries monitored by Bloomberg..
