Russian stock market surges to April levels thanks to U.S. Federal Reserve news
MOSCOW. Sept 14 (Interfax) - The Russian stock market finished out the week with dramatic growth, reaching April's levels thanks to news that the U.S. Federal Reserve will launch QE3, one of the components of which is the purchase of $40 billion worth of mortgage-backed securities a month.
By the end of Friday's trade, the RTS stock index had jumped 7% to 1589.4 points, reaching its highest level since the end of April. The MICEX index had grown 4.3% to 1535.38 points, reaching its highest level since the beginning of April.
The majority of benchmark stocks on the MICEX-RTS stock exchange soared by up to 10%, led by IDGC Holding (+9.1%) and followed by VTB (+6.2%), Gazprom (+4%), Gazprom Neft (+2.3%), Lukoil (+3.8%), NOVATEK (+5.4%), MMC Norilsk Nickel (+5.9%), OJSC Polyus Gold (+1.6%), Rosneft (+4.5%), Rostelecom (+4.1%), Sberbank of Russia (+4.6% and +8.7% for prefs), Surgutneftegas (+5.7%), Tatneft (+2%) and FGC UES (+7%).
Second-tier winners were Mechel (+11%), TGK-1 (+9.9%), Raspadskaya (+9.7%), Novolipetsk Steel (+9.2%), TGK-14 (+8.5%) and Severstal (+8.1%).
AFK Sistema was a second-tier loser, with its stock falling 3%.
