News on fresh sanctions triggers sales in Russian stocks

MOSCOW, Jun 6 (PRIME) -- The Russian stock market slid on Monday as investors focused on preparations of a new sanction package by the E.U. and the U.S., analysts said.

The MOEX Russia Index fell 1.12% to 2,282.16 and the RTS decreased 1.75% to 1,178.51.

“The national stock market was mainly in a bearish mood today. Sales mainly targeted the depositary receipts because of the sanctions slapped on the National Settlement Depository last Friday that increased the risk of delisting the securities,” Yegor Zhilnikov, senior analyst at Promsvyazbank, said.

The possibility of dilution after conversion of receipts hit the most liquid shares like independent gas producer Novatek, retailer Magnit, and steelmaker Novolipetsk Steel (NLMK), which lost 3.11%, 3.62%, and 0.40%, respectively, Zhilnikov said.

“The National Settlement Depository was included in the E.U. sanction list, there are other sanctions, but the key driver is the absence of growth drivers for the Russian stock market has no ideas for growth. The majority of companies reject dividend payments, the growth prospects remain unclear, and that is why investors are not eager to buy. Activity remains thin,” Otkritie Research’s leading analyst Andrei Kochetkov, said.

Mobile operator MTS gained 3.41% to 268.35 rubles as one of a handful of firms that continue to implement a clear dividend policy, Kochetkov said.

“Trading on the Moscow Exchange was in the red zone on June 6 as the E.U. and the U.S. started development of the seventh package of sanctions against Russia,” investment company Freedom Finance said in a research note.

Diamond mining giant ALROSA gained XX% to XX rubles because the sanctions imposed by the U.K., the E.U., and the U.S. triggered a shortage diamonds and higher prices, but don’t disrupt Russian supplies to India. In the long run, ALROSA can raise exports and income when its logistics and financial problems are solved, Freedom Finance said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-0.17	296.50	4.406
Severstal	+0.82	716.90	2.985
Sberbank	-0.36	118.78	2.652
Yandex	-6.49	1399.80	1.291
Novatek	-3.11	791.60	1.238

(61.9659 rubles – U.S. $1)

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