MOSCOW: Russia's stock markets rose on Wednesday, helped by rising oil prices and a bumper provision of cheap loans to banks by the European Central Bank that boosted most riskier assets and currencies.
By 1155 GMT the rouble-denominated MICEX index rose 1.18 percent while the dollar-denominated RTS index was up 1.2 percent.
Banks took 530 billion euros ($711.5 billion) at the ECB's second-ever offering of 3-year funding on Wednesday, on the high side of market expectations.
That helped Brent crude oil gain over $1 on Wednesday on expectations much of the cheap loans will go into buying of higher-yielding assets and spur growth through more lending across Europe.
"The day will be dominated by the take-up at the second round," analysts at VTB Capital said in a note.
Boosted by oil prices, shares in Russian energy companies rose, with Lukoil stocks rising 1.5 percent to 1,859 roubles and Gazprom adding 1.4 percent to 194 roubles.
Crude producer Rosneft rose 1 percent to 226.65 roubles, despite announcing late on Tuesday it would buy back shares at a discount to its share price, at 212 roubles a share.
Russian markets have shown some volatility in recent days ahead of Sunday's presidential elections, reflecting investor uncertainty about the country's political stability after recent massive street protests.
Thousands of people have gathered to protest against alleged electoral fraud after parliamentary elections in December. According to the latest polls, Prime Minister Vladimir Putin is widely expected to win easily.
One trader at a Western fund operating in Russia said that Wednesday's rise in Russian stocks was due to higher oil prices and people being calmer about the upcoming elections.
The rouble was little changed on Wednesday, down 0.26 percent against the dollar at 29.12.
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