Russian stocks are headed for the best performance among the world’s major equity markets for a second straight month as President Vladimir Putin pulls back from the confrontation in neighboring Ukraine.
The Micex Index fell from an eight- month high as insurgents downed a Ukrainian helicopter, violating a cease-fire and rekindling concern new sanctions will be imposed. Energy and telecom shares paced the drop.
OAO MegaFon, Russia’s second-largest wireless operator, agreed to buy at least $600 million of equipment from Huawei Technologies Co. at a time when ties between Russian and Chinese companies are strengthening.
Huawei Technologies Co., China’s biggest maker of phone-network equipment, seeks to capitalize on the country’s strengthening ties with Russia by expanding into services for energy giants such as OAO Gazprom.
Most Russian stocks rose after entering a bull market last week as OAO Gazprom climbed on speculation the natural gas-export monopoly will secure outstanding payments from Ukraine following talks today.