The glamorous 28-year-old Russian carded six birdies and three bogeys in hot and breezy conditions at Golf Costa Adeje to end the day on seven under par ahead of three other players.
Scotland´s Kylie Walker (71), Welshwoman Amy Boulden (69) and South African Connie Chen (70) all sit on six under but Solheim Cup winners Carlota Ciganda of Spain and Charley Hull from England lurk a stroke further behind.
The stunning sea-side course seems to suit Balikoeva´s game as her best finishes on the Ladies European Tour in 2008 and 2009, of tied fifth and equal 24th respectively, were recorded on the same golf course.