Lower dollar, higher oil back Russian stocks, ruble

MOSCOW, Mar 31 (PRIME) -- Russian stocks increased on Thursday on the back of rising oil prices as Ecuador said it would support the initiative to cut oil output, while the U.S. dollar weakened against global currencies, analysts said.

The MICEX rose 0.16% to 1,871.15 and the RTS increased 0.73% to 876.20.

“External conditions were very positive today for the Russian market due to a rise in oil quotations,” Vasily Tanurkov, an analyst at Veles Capital, said.

“Oil, in its turn, was supported by the dollar weakening against global currencies, as well as by a new statement on a coming meeting of oil producing countries in Doha – Ecuadorian oil minister Carlos Pareja said that Ecuador and Venezuela are ready to support decreasing oil production at the meeting in April,” he said.

The rise of the dollar-denominated RTS was technically supported by a stronger ruble, which strengthened to below 67 against the dollar hitting a 2016 record high amid rising oil prices.

Yevgeny Loktyukhov, an analyst at Promsvyazbank, said that the financial sector was particularly supported by the ruble strengthening.

VTB Bank rose 2.65% to 0.077 rubles, the Moscow Exchange increased 3.18% to 105.05 rubles and top Russian lender Sberbank rose 0.69% to 109.9 rubles.

Norilsk Nickel fell 2.79% to 8,700 rubles because Bloomberg reported that producer’s owners CEO Vladimir Potanin and Oleg Deripaska preliminary agreed to adjust the company’s dividend policy, which envisages payment of 50% of EBITDA in dividends.

The news put under pressure other metals producers, Loktyukhov said. Deripaska’s RUSAL, which holds a 27.8% stake in Norilsk Nickel, went down 3.54% to 231.6 rubles.

Russian exporters were put under pressure by the ruble strengthening, the analyst said.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that Retailer Dixy, whose revenue increased 19% in 2015, as calculated under International Financial Reporting Standards (IFRS), rose 0.57% to 302.5 rubles.

Oil major Rosneft fell 0.84% to 305.2 rubles, while its IFRS net profit contracted 34.4% in U.S. dollars in 2015, the expert said, adding that nonetheless the company published quite strong financial results.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.69	109.90	11.623
Gazprom	-0.03	147.75	5.157
Lukoil	+0.46	2622.00	4.392
Norilsk Nickel	-2.79	8700.00	4.180
Magnit	+1.34	10550.00	2/503

(67.6076 rubles – U.S. $1)

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