Dividend cut-offs, shrinking oil prices undermine Russian stocks

MOSCOW, Jul 18 (PRIME) -- Russian stocks contracted on Wednesday in line with falling oil prices and due to dividend cut-offs in shares of many local companies, analysts said.

The MOEX Russia Index fell 0.70% to 2,294.78 and the RTS decreased 1.75% to 1,144.72.

“The unfavorable external background and internal factors exerted pressure on the (MOEX Russia) Index. Shares of Gazprom and preferred papers of Surgutneftegas fell prior to the record date for the register of shareholders for dividends for the previous year,” Daniil Yegorov, head of the trade strategies department at Swiss brokerage house Dukascopy Bank S.A., said.

Gazprom lost 4.83% and preferred shares of Surgutneftegas slid 1.50%.

“The price of a barrel of Brent oil fell to its lowest in the past three months due to currency revaluation and to an unexpected growth of crude reserves in the U.S., and it exerted the pressure on the exchange rate of the Russian ruble,” Yegorov said.

Vasily Oleinik, an expert at investment company Finam, said that apart from the oil prices the market was undermined by fears of new anti-Russian sanctions.

“The Russian stock market finished the day in the red zone, and the technical condition of the market also worsened. Dividend cut-offs and ontraction of oil prices, albeit moderate, weighed on the indices. The short-term prospects for bulls became alarming,” Yelena Kozhukhova, an analyst at Veles Broker, said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.80	216.28	13.396
Gazprom	-4.83	138.29	3.969
Lukoil	+0.86	4299.00	2.591
Norilsk Nickel	-0.34	10574.00	2.032
MegaFon	+1.28	592.50	1.328

(62.4352 rubles – U.S. $1)

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