Coronavirus woes, US sanction talks drag Russian stocks down

MOSCOW, Feb 7 (PRIME) – The Russian stocks contracted on Friday on worries about the continuing outbreak of the coronavirus in China, media reports of Washington’s possible new anti-Russian sanctions, and an oil price fall, analysts said.

The MOEX Russia Index fell 0.29% to 3,087.63 and the RTS decreased 1.38% to 1,518.23.

“The markets again focus on the news about the coronavirus outbreak. The number of deaths in China reached 636, while the number of infected people is 31,161. The dynamics of the outbreak as well as lethality do not change, which means it is too early to say that a peak of the disease has passed, and it is wrong to calculate its impact on the economy. It is obvious that Russian exports largely depend on China’s consumption,” Otkritie Broker’s senior analyst Andrei Kochetkov said.

Vitaly Manzhos, senior analyst at investment company Algo Capital, said that the news about the outbreak was contradictory. The official Beijing said that its measures should cope with the outbreak and restore economic growth, but delayed the release of imports and exports statistics for January saying the method of their publication changed.

The futures for U.S. stock indices and oil prices fell, Manzhos said.

“The news flow connected to a new activation of sanction threats from Washington exerted additional pressure on the Russian market,” Sergei Deineka, financial analyst at BCS Premier, said.

Manzhos also said that media reports about new possible Washington’s sanctions against oil major Rosneft for its operations in Venezuela, so the company lost 2.52% to 463.60 rubles.

Preferred shares of oil company Surgutneftegas outperformed the market and grew 0.66% to 35 rubles as they usually do when the ruble falls, Manzhos said.

Precious metals producers Polymetal International and Polyus were popular as defensive assets and grew 2.39% to 1,056.70 rubles and 2.69% to 7,765.50 rubles, respectively, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.87	254.30	12.649
Gazprom	-0.98	229.11	11.455
Rosneft	-2.52	463.60	7.658
Lukoil	-0.86	6450.50	6.097
Norilsk Nickel	-0.19	21200.00	4.232

(62.7977 rubles – U.S. $1)

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