Russian stocks fall on tax initiatives of Finance Ministry - All News - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Russian stocks fall on tax initiatives of Finance Ministry

MOSCOW, Sep 16 (PRIME) -- Russian stocks contracted on Wednesday as investors were displeased with the new tax initiatives of the Finance Ministry,market participantswere also waiting for results of a meeting of the U.S. Federal Reserve System (Fed), analysts said.

The MOEX Russia Index fell 0.19% to 2,975.01 and the RTS decreased 0.15% to 1,251.86.

The Russian market tried to grow at the beginning of the trade, but the attempt was squashed quickly by news about initiatives of the Finance Ministry. The authority wants to raise the tax on production of some fertilizers, ores, and non-ferrous metals by 3.5 times starting from 2021, Andrei Kochetkov, senior analyst for global research at Otkritie Broker, said.

Association of steel producer Russian Steel expects the metals sectors debt burden to grow by 90 billion rubles, which will lead to a significant reduction of competitiveness of Russian steel products, Kochetkov said.

The external background for the Wednesday trade was mixed. Investors focused on expectations of results of the Feds meeting that is to be held today, and we expect details of plans to control the yield curve. Global markets have priced in the correction of the first 10 days of September, and they are waiting for waymarks from the regulator, Yevgeny Mironyuk, analyst at investment company Freedom Finance, said.

Shares of gold producer Polyus act as a support for the market rising 2.77% to 17,413 rubles, and national flagship carrier Aeroflot outperformed the market and grew 0.63% to 82.90 rubles as the shares are still reacting to the Tuesday approval of the issuance of 1.7 billion additional shares, Mironyuk said.

Kochetkov also said that plans of the Finance Ministry led to sales in shares of metals producers, so Norilsk Nickel lost 1.84% to 19,272 rubles, Novolipetsk Steel (NLMK) fell 0.66% to 167.86 rubles, and Severstal went down 0.60% to 991 rubles, among other companies.

Below are the MOEX Russia Index five most active stocks on Wednesday:

Company Change, % Last price, rbl Trading volume, bln rbl
Norilsk Nickel -1.84 19272.00 12.912
Sberbank -0.15 231.16 8.499
Lukoil -0.81 4836.5 6.341
Gazprom +0.87 183.80 6.338
Tatneft -4.34 528.8 5.231

(75.1884 rubles U.S. $1)


16.09.2020 19:24