Novatek, chemicals drive Russian shares higher

MOSCOW, Jun 20 (PRIME) -- The Russian stock market grew on Monday propelled higher by independent gas producer Novatek, the chemical and petrochemical companies and a favorable external background, analysts said.

The MOEX Russia Index rose by 2.14% to 2,404.40 and the RTS increased by 3.21% to 1,357.63.

“After a slight slowdown last Friday, the Russian stock market resumed growth today against the background of a lack of noticeable negative news. The MOEX Russia Index ended the day above 2,390, returning to the levels of the end of May,” Alexei Golovinov, leading analyst at Promsvyazbank, said.

Novatek made the most noticeable contribution to the market’s increase gaining 11.67% to 978 rubles on several statements by the company’s CEO during the recent St. Petersburg International Economic Forum. Also, reports emerged that Saudi Aramco may buy the stake of TotalEnergies in Novatek’s Arctic LNG 2 project, Golovinov said.

Otkritie Research leading analyst Andrei Kochetkov said that chemicals and petroleum chemicals were one of the booming sectors after a statement by E.U. foreign policy chief Josep Borrell that the E.U. countries could freely buy food and fertilizers from Russia. Fertilizer producer PhosAgro grew by 4.07% to 7,850 rubles.

“The external background was moderately positive today. Attention will be focused this week on statements by chairpersons of central banks. The European floors are ending the day with significant growth, while there is no trade today in the U.S. because of a holiday, and Asia is in the red zone, while China is growing,” Yevgeny Linchik, head of the stock management department of managing company Pervaya, said.

The start of trade in Chinese securities on the SPB Exchange with primary listing on the Hong Kong Stock Exchange, the 3-month deposits that are maturing now, and the recent reduction of the key rate should free liquidity of private investors and improve its inflow to the stock market in the medium term, Linchik said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+5.98	131.29	8.358
Gazprom	-1.12	311.98	6.623
Novatek	+11.67	978.00	4.081
Lukoil	+0.66	4209.50	1.937
Acron	+8.82	17742.00	1.031

(56.7101 rubles – U.S. $1)

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