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Russian shares extend gains, rouble flat

MOSCOW, Oct 1 (Reuters) - Russian shares extended fragile gains on Monday tracking upbeat manufacturing data, and the rouble steadied, pressured by declining oil prices.

At 1355 GMT, the benchmark RTS index

was up 1.17 percent to 1,493.4, supported by Russia's PMI manufacturing data showing monthly growth. .

The rouble-denominated MICEX exchange

rose by 0.98 percent to 1,472.56 points.

"Importantly, output growth strengthened at the end of the third quarter, signalling a still solid pace of production expansion," Alexander Morozov, chief economist for Russia at HSBC, said in a note.

Utilities led the gains with Mosenergo shares trading up 3.8 percent

and the Federal Grid Co.

up 2.0 percent, as the Russian government continues to discuss ways to consolidate the sector.

The falling oil price - a key source of revenues for Russia - and the end of monthly and quarterly tax payments weighed on the rouble.

The rouble was flat versus the dollar at 31.14

and shed 0.01 percent to 35.22 against the euro-dollar basket . It was down 0.2 percent at 40.19 versus the euro . Brent crude futures

fell 0.3 percent to $112,12 per barrel. U.S. crude

lost 0.19 percent to $92.00.

"We expect the rouble to drop slightly today driven by weaker global market sentiment, the decline in euro and the end of the tax payment period," VTB Capital analysts wrote in a note before European shares and the euro climbed despite gloomy new euro zone manufacturing data

.

Also overhanging markets is weak Chinese data highlighting the frailty of the global economy

and continuing uncertainty over a bail-out for Spain, whose credit rating is due for a review by Moody's Investors Service.

A Reuters poll last week showed the rouble weakening to 31.71 against the greenback by the end of 2012

. Non-deliverable forwards showed the rouble at 31.7890 per dollar in three months' time .

The Russian debt market was broadly flat on Monday. The yield on Russia's Eurobond benchmark Eurobond maturing in 2030

, fell to 2.956 percent from 2.983 percent seen on Friday.

LIVE DATA BELOW DRIVES FORMATTED TABLE ABOVE

Russian Markets Latest Net Change % Change % Change on year STOCKS MICEX 1472,74 14,48 0,99 5,03 RTS 1493,45 17,75 1,20 8,07 London ADRs 862,75 11,20 1,32 10,83

Emrg Mkt Indx

1001,97 -0,69 -0,07 9,34 MSCI Russia 800,85 9,72 1,23 8,70 Sberbank 91,80 0,81 0,89 16,41 VTB 0,05 0,00 0,66 -8,96 Gazprom 159,38 1,63 1,03 -6,96 LUKOIL 1938,60 16,30 0,85 13,87 Rostelecom 135,69 1,29 0,96 -10,73 Dollar/Rouble 31,14 -0,04 -0,14 -3,12 Euro/Rouble 40,19 0,08 0,19 -3,70

Rouble basket

35,22 0,01 0,03 -3,42 DEBT Bid Ask %Rtn Coupon Russia 10-yr bond

7,80 7,77 -0,18 7,60

MONEY MARKET Bid Ask Close Overnight rate

6,44 6,94 5,00

TABLE FROM POWER PLUS PRO

All data taken from Reuters at 0955 GMT

(Reporting by Maya Dyakina and Lidia Kelly; Editing by Douglas Busvine and Stephen Nisbet)

((maya.dyakina@thomsonreuters.com)(+7-495-775-12-42))

Keywords: RUSSIA MARKETS/