Exchange traded funds tracking major commodities producer Russia have been among the top performers in the equity rally from the early-October low.
Market Vectors Russia (NYSEArca: RSX) has rallied about 40% from its intraday low earlier this month.
The Russian stock market is following the country’s largest crude oil company higher, as Rosneft reported quarterly profit that rose 10%.
Rosneft has reported third quarter profit up $2.6 billion, as revenues grew 60%. Analysts had expected results to be lower due to its key new field Vankor losing its export duty preferences, the AP reports. [ETF Spotlight: Market Vectors Russia (RSX)]
Meanwhile, economic growth in the country has accelerated the most over the past quarter as home lending has picked up and inflation has remained at bay, reports Scott Rose for Bloomberg. Due to healthy consumer demand and lack of inflationary pressure, Russia will leave borrowing costs unchanged, at 8.25%. [Russia is Goldman’s New Favorite Country]