OPEC’s oil quota boost pummels Russian stocks

MOSCOW, Dec 4 (PRIME) -- Russian stocks plunged on Friday on OPEC decision to raise its production quota and a consequent fall of the ruble, analysts said.

The MICEX fell 1.79% to 1,755.22 and the RTS decreased 1.84% to 811.72.

“The market sped up its fall at the end of the trading session on the news that OPEC raised its oil production quota…Oil markets immediately responded with a contraction of the Brent oil price,” Mikhail Abramov, an analyst at investment company Veles Capital, said.

The news also launched sales of Russian oil and gas companies. Gas giant Gazprom lost 1.64%, oil majors Rosneft and Lukoil plunged 2.39% and 2.70%, and oil company Surgutneftegas fell 2.13%.

“The OPEC meeting’s results bear no good for oil and the ruble,” and on Monday, when the market reacts to official news, oil and the ruble may plunge even further if the quota increase is confirmed, Yury Kravchenko, a senior analyst at Veles Capital, said.

Besides the oil sector, overall pessimism and the weak ruble also resulted in sales of shares of Russian metals and mining companies. Metals giant Norilsk Nickel lost 2.88%, steelmaker Novolipetsk Steel (NLMK) plunged 3.45% and Magnitogorsk Iron and Steel Works fell 1.59%.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.91	103.50	11.196
Gazprom	-1.64	137.70	5.156
Lukoil	-2.70	2489.90	3.585
Norilsk Nickel	-2.88	8851.00	3.262
Magnit	-3.84	11799.00	2.420

(67.7691 rubles – U.S. $1)

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