Oil price increase propels Russian stocks higher

MOSCOW, Dec 20 (PRIME) -- Russian stocks grew on Tuesday supported by higher oil prices in the absence of other drivers, analysts said.

The MICEX rose 0.48% to 2,226.36 and the RTS increased 1.10% to 1,142.54.

“The external background was generally neutral for the Russian stock market on Tuesday. The European indices grew marginally through the trading session, and the U.S. floors edged up at opening. The moderately positive dynamics of the MICEX index was based on an upward trend of oil prices,” Yegor Dakhtler, an analyst at investment company Veles Capital, said.

The Brent oil price rose 1.612% to U.S. $55.82 per barrel as of 6.10 p.m. Moscow time, according to the ICE exchange.

Irina Rogova, an analyst at the Forex Club group of companies, also said that oil prices became the driver for the market, but the market is very unlikely to receive any more catalysts for an upward movement anytime soon, and trading may continue in a narrow range.

“The U.S. Federal Reserve System’s aggressive stance towards its monetary policy acts as a restraining factor,” Rogova said.

Vitally Manzhos, a senior analyst at Bank Obrazovanie, said that shares of oil major Lukoil outperformed the market and grew 1.93% to 3,415 rubles as Tuesday was the last day the shares were trading with dividends for January–September. Lukoil is to pay 75 rubles per share in the dividends, which accounts for about 2% of the current costs of shares.

Common and preferred shares of power utility Russian Grids rose 1.86% to 1.1918 rubles and 5.25% to 2.145 rubles, respectively, in correction to previous losses, Manzhos said.

Shares of construction company LSR Group went up 0.84% to 964 rubles due to a recent statement of Deputy Prime Minister Dmitry Kozak that the government plans to prolong a program for subsidization of the interest rate of mortgage loans for households, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.92	175.90	5.533
Gazprom	+0.45	155.30	4.337
Norilsk Nickel	-0.11	10249.00	2.577
Lukoil	+1.93	3145.00	2.024
Rosneft	-0.61	400.15	1.265

(61.7931 rubles – U.S. $1)

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