Geopolitical tensions, weak oil prices drag Russian stocks down - News Archive - 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

Geopolitical tensions, weak oil prices drag Russian stocks down

MOSCOW, May 23 (PRIME) -- Geopolitical tensions between the U.S. and North Korea, the news regarding a U.S. trade conflict with China, and a slump of oil prices resulted in contraction of Russian stocks on Wednesday, analysts said.

The MOEX Russia Index fell 1.35% to 2,295.57 and the RTS decreased 2.27% to 1,174.71.

A possible denial of (U.S. President) Donald Trump to partake in negotiations with (North Korean President) Kim Jong-un raised concerns that the U.S. may start pressurizing North Korea and China in talks around the North Korean nuclear programThe negative environment exerted pressure on the Russian stock market, Yevgeniya Abramovich, head of the currency risks research department at Swiss brokerage house Dukascopy Bank SA, said.

Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said that sales in Russian shares were triggered by sales at the world trade floors, and the support of oil prices vanished as the prices no longer rallied.

The Brent oil price decreased 1.57% to U.S. $78.34 per barrel as of 5.45 p.m. Moscow time, according to the ICE exchange.

Preliminary data on Purchasing Managers Indices (PMI) for manufacturing and non-manufacturing sectors of the E.U. economy turned out to be weaker than expected, which cooled down bulls of the European trade floors. Trump said that the deal with China on external trade is unlikely to be achieved easily and that the structure of the trade balance of the two countries has to be changed, and the statements hurt the mood of Asian investors, Kirsanova said.

Preferred shares of oil company Bashneft lost 5% to 1,737.50 rubles after the companys board of directors recommended paying 158.95 rubles per share in dividends for 2017. Kirsanova said that the market expected a higher dividend payout.

Igor Kovalyov, an analyst at InstaForex group of companies, said that shares of retailer Dixy Group gained 3.34% to 324.5 rubles. The companys subsidiary Dixy Yug consolidated a 98.79% stake in the parent company, and now it can buy back the remaining shares for 340 rubles per paper, Kovalyov said.

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

Company Change, % Last price, rbl Trading volume, bln rbl
Sberbank -2.04 221.00 10.856
Lukoil -2.22 4263.00 3.385
Gazprom -0.30 146.06 2.837
Rosneft -2.04 377.70 1.559
Norilsk Nickel -1.35 10850.00 1.362

(61.2610 rubles U.S. $1)


23.05.2018 19:17
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 71.9232 -0.3208 20 apr
USD 63.9602 -0.1086 20 apr
Stock Market Indices
1D 1W 1M 1Y
rtsi 1260.82 -0.12 18:50 19 apr
micex 2563.90 +0.12 18:50 19 apr
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 162.57 +0.48 18:49 19 apr
lkoh 5602.00 -0.14 18:48 19 apr
rosn 432.00 -0.84 18:49 19 apr
sber 232.60 -0.08 18:49 19 apr
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 71.9125 -0.2875 14:59 19 apr
USDTD 64.0125 +0.0400 17:44 19 apr