Lower oil price weakens stocks, metals firms win from China stats

MOSCOW, Oct 2 (PRIME) -- Russian stocks contracted on Monday due to a fall of oil prices, while robust macro statistics from China supported only metals and mining companies, analysts said.

The MICEX eased 0.07% to 2,075.72 and the RTS decreased 0.71% to 1,128.69.

The RTS index lost more than the MICEX due to weakening of the ruble. “The Russian currency lost positions due to concerns about higher U.S. oil production, as data of oilfield servicing company Baker Hughes showed an increase of drilling activity in the country over the past week,” Daniil Yegorov, head of the trading strategies department at Swiss brokerage house Dukascopy Bank SA, said.

The Brent oil price lost 1.628% to U.S. $55.88 per barrel as of 5.38 p.m. Moscow time, according to the ICE exchange.

“Nevertheless, China published positive macroeconomic statistics over the weekend, including an improved business activity index in the processing industry that hit a five-year record prompting Russian metals companies move against the market,” Yegorov said.

Metals giant Norilsk Nickel gained 2.16% to 10,134 rubles, steelmakers Severstal and Novolipetsk Steel (NLMK) rose 1.62% to 883.60 rubles and 2.96% to 136.20 rubles, respectively, and Magnitogorsk Iron and Steel Works (MMK) grew 1.73% to 44.035 rubles.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the rise of metals companies was also supported by the weakening ruble and contraction of oil prices.

“We see a typical switch of interest of investors and speculators to shares of non-oil and gas exporters at moments of a situational worsening of the oil market mood,” Manzhos said.

Andrei Kochetkov, an analyst at Otkritie Broker, said that risks in the Russian civil aviation industry in the wake of failure VIM-Avia airline create mid-term advantages for national air carrier Aeroflot. Shares of the airline rose 0.43% to 184.75 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.35	193.00	6.933
Norilsk Nickel	+2.16	10134.00	3.471
Gazprom	-0.25	121.90	1.716
Lukoil	-0.64	3044.50	1.229
Rosneft	-1.24	315.00	1.085

(58.0169 rubles – U.S. $1)

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