Firmer oil price, ruble push Russian stocks higher

MOSCOW, Nov 3 (PRIME) -- Russian stocks grew on Tuesday spurred up by higher oil prices which translated into a firmer ruble, analysts said.

The MICEX went up 1.60% to 1,763.60 and the RTS rose 3.82% to 886.36.

“The strengthening of the ruble against the U.S. dollar has stimulated the outrunning growth of the U.S. dollar–denominated RTS index,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

“The reason for better purchases was a significant improvement of the oil market mood. Thanks to higher oil futures Russian bulls were able to push the MICEX above 1,760 thanks to the index’ 10-month high.”

The Brent oil price rose 1.514% to U.S. $49.54 per barrel as of 6.02 p.m. Moscow time.

“Internal news also played in favor of the Russian market, including the news that the central bank has reduced its 2015 capital flight forecast,” Vasily Tanurkov, deputy head of investment company Veles Capital’s stock market analysis department, said.

Troubled airline Transaero plunged 29.27% to 11.60 rubles after Vladislav Filyov, a co-owner of S7 Group, had withdrawn from a deal to acquire a 51% interest in it due to failure of the latter’s core owner Alexander Pleshakov to consolidate the 51% stake free of third party claims.

State-run oil major Rosneft outperformed the market and gained 3.22% to 270.65 rubles after media reports that Indian Oil Corp Ltd is considering acquisition of a stake in its Vankor deposit. In September, Rosneft signed an agreement to sell 15% in Vankorneft to India’s ONGC.

Below are the MICEX’ five most active stocks on Tuesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.87	95.40	11.599
Gazprom	+2.87	141.75	5.375
Lukoil	+2.98	2483.90	4.114
Norilsk Nickel	-0.41	9546.00	2.081
Rosneft	+3.22	270.65	1.673

(63.7993 rubles – U.S. $1)

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