MOSCOW, Nov 22 (Reuters) - Moscow's rouble-denominated MICEX index headed for a second weekly gain on Friday, albeit a small one, with investors still contemplating an entry point for a year-end rally.
At 0735 GMT, the rouble-denominated MICEX was up 0.5 percent to 1,500.78 points, adding 0.5 percent since last Friday's close. The dollar-denominated RTS index was up 0.8 percent to 1,437 points, down 0.6 percent this week so far.
Russia's market has been boosted along with other emerging market assets by expectations that the U.S. Federal Reserve will maintain its monetary stimulus programme for now.
Russia-dedicated funds in the week through to Wednesday nevertheless reported net outflows of over $130 million, versus $225 million the previous week, Uralsib Capital cited EPFR Global. An outflow of more than $100 million from the iShares MSCI Russia ETF managed by BlackRock was the key change behind the negative number for Russia.
'We are about to enter the historically strong month of December. However, Russian stocks may yet provide a more attractive entry point into the market in the coming few weeks,' Slava Smolyaninov, equity strategist at Uralsib Capital said in a note.
Strategists at Sberbank Investment Research expect the outperformance of growth stocks to continue, meaning companies with a strong record of earnings growth, such as gas producer Novatek, search engine Yandex, and food retailer Magnit.
'We expect the index (RTS) to perform strongly over the next quarter thanks to support from the typical year-end rally and the 2014 Winter Olympic Games in Sochi, and then to decline once tapering starts and its consequences are felt on emerging markets,' the strategists said.
Russian heavyweight blue chips rose on Friday with top gas producer Gazprom adding 0.8 percent and chief bank lender Sberbank up 0.6 percent.
The rouble edged up on Friday, trading near two-month lows, supported by the tax payment period and with investors pricing in that the Federal Reserve will not begin to reduce its stimulus soon.
The rouble was 0.3 percent stronger at 32.91 to the dollar and 0.2 percent higher at 44.37 per euro. It was 0.2 percent stronger against the euro-dollar basket at 38.07.
For rouble poll data see
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(Reporting by Maya Nikolaeva, editing by Jason Bush and Hugh Lawson) Keywords: RUSSIA MARKETS/
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