MOSCOW: Russia's MICEX share index touched a record high on Thursday, lifted by oil prices and a bullish mood on global markets, before retreating as the oil price fell off 2016 highs.
The MICEX, which shows the value of Russian shares in rouble terms, touched 1,977 points, above a previous all-time high of 1,966 points reached in 2008.
At 0855 GMT, the MICEX had fallen back and was down 0.5 percent on the day at 1,951 points.
The dollar-denominated RTS index was also down 0.4 percent at 940 points, still less than half its all-time high of 2,498 points in 2008.
The rouble was 0.4 weaker against the dollar at 65.40 and down 0.3 percent at 73.89 versus the euro .
Russian assets have been lifted by global oil prices, with international benchmark Brent touching a 2016 high of $46.13 per barrel on Thursday before falling back to $45.75, down 0.1 percent on the day.
However, a halving of the rouble's value since 2013 means share prices expressed in roubles are now worth much less than in 2008, the last time the MICEX approached 2,000 points.
"It reached (a maximum) not thanks to the fact that there is big interest in the Russian share market, but simply because the rouble has been devalued," said Konstantin Chernyshev, head of research at Russian investment company Uralsib Capital.
"Maybe (it will reach 2,000) and may be not. From the fundamental point of view, based on the Russian economy, there is no particular reason for optimism."
Despite the rouble's devaluation, Russian share prices have struggled to regain their 2008 highs because of low economic growth, the plunge in international oil prices and political risks.
However, Russian stocks have rallied in both rouble and dollar terms since mid-February, lifted by the rebound in global oil prices and stock markets.
Russian stocks have also been lifted this week by a government order to increase the dividend pay-out rate for state companies to 50 percent from 25 percent.
"The news of dividend payments this week has also played a role but at the end of the day Russia is strong because Turkey is strong, Brazil and South Africa are strong," said Maarten-Jan Bakkum, investment strategist for emerging market funds at NN Investment Partners, which has been increasing its Russia weighting.
"Domestically there is not much happening but in the early stages of emerging market rebound the gains are usually down to global factors and you then hope the local economy will start feeding off that."
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