Negative environment, falling oil prices undermine Russian stocks
MOSCOW, Nov 27 (PRIME) -- Russian stocks contracted on Monday undermined by falling oil prices, lower Asian floors and a strong ruble, analysts said.
The MOEX Russia Index fell 0.87% to 2,142.27 and the RTS decreased 0.60% to 1,159.08.
“The unfavorable background of trade at the Asian floors became the major reason for pessimism of the Russian market players. In addition to that, the ruble continued growing, which decreases attractiveness of shares of exporting companies,” Andrei Kochetkov, an analyst at Otkritie Broker, said.
Kochetkov said that a strong ruble pushed metals companies Norilsk Nickel, Severstal, Magnitogorsk Iron and Steel Works (MMK), and Novolipetsk Steel (NLMK) down 1.86% to 10,550 rubles, 1.37% to 898 rubles, 1.75% to 45.18 rubles, and 2.40% to 129 rubles, respectively.
“The market mood was under the pressure mainly from falling oil prices. At the same time, the ruble rose against the U.S. dollar and the euro supported by the tax period,” Yelena Kozhukhova, an analyst at Veles Broker, said.
Daniil Yegorov, head of the trade strategies department at Swiss brokerage house Dukascopy Bank SA, said that the Russian market contracted as Chinese industrial companies’ grew slower, and a deficit of currency liquidity in the Russian banking system.
Kochetkov also said that shares of metals and mining group Mechel grew 2.34% to 146.45 rubles as investors wait for a strong financial report calculated under International Financial Reporting Standards (IFRS).
Below are the MOEX’ five most active stocks on Monday:
Company | Change, % | Last price, rbl | Trading volume, bln rbl |
---|---|---|---|
Sberbank | -0.54 | 226.76 | 5.436 |
Gazprom | -0.05 | 133.50 | 3.716 |
Magnit | -0.50 | 6602.00 | 1.494 |
Lukoil | -0.88 | 3365.00 | 1.336 |
MMK | -1.75 | 45.18 | 1.103 |
(58.5318 rubles – U.S. $1)
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