MOSCOW: Russian shares outperformed other emerging markets on Monday and the rouble held steady in thin trade, underpinned by buoyant oil prices and signs that protests following Vladimir Putin's return to the presidency appear to be ebbing.
Russian markets were closed for a public holiday on Thursday and Friday and opened for a rare and illiquid Sunday session, when asset prices mostly caught up with gains elsewhere.
The dollar-based RTS share index rose 0.2 percent on the day to 1,725.3 points by 1024 GMT and the rouble-traded MICEX index rose 0.2 percent to 1,609.6 points.
Both were well above Wednesday's pre-holiday close and easily outperformed the broad emerging markets index, which was down 0.4 percent, chiefly on data showing weak exports in China.
Investors kept a close eye on street protests on Saturday following the March 4 presidential vote.
Thousands of chanting Russians challenged Putin's election victory but their numbers were far fewer than in previous weeks, and some protesters say they expect demonstrations to ebb.
Analysts have said that, if the street protests remain peaceful, that will have positive effect on investor sentiment towards Russia, and Putin's comeback could be seen as a sign of political stability.
"Russia continues to be the most attractive emerging market country bet. Investors reacted positively to the... election result and added $121 million to Russia-dedicated retail funds in the week to Wednesday," Chris Weafer, a strategist at Troika Dialog said in a note, citing EPFR data.
"This was not a huge amount but surpassed all other country funds over the week," he said.
This week the market will also be watching Tuesday's central bank's interest rate meeting, at which monetary policy parameters are widely expected to stay unchanged.
Although oil prices were down on Monday, at above $125 per barrel they remain supportive for Russia, ensuring the country's current account remains in surplus. The 2012 budget has been based on an average oil price of $100.
That helped support the rouble, which eased from Sunday's close 0.1 percent to 29.56 against a strong dollar and firmed 0.05 percent to 38.80 against the euro.
Versus the euro-dollar basket, the rouble eased 0.1 percent to 33.72.
"There are no factors favouring a stronger rouble now as external markets are in the red and there is a long time before tax payments," said Igor Akinshin, a dealer at Alfa bank.
In the second half of every month the rouble usually gains support from export-focused companies that convert foreign currencies to meet local tax payments.
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