Oversold Russian stocks fall as profit taking sets in

MOSCOW, May 6 (PRIME) -- Russian stocks fell on Wednesday as the market sold exporting companies and in profit taking after an increase in the previous session, analysts said.

The MICEX fell 0.44% to 1,714.31 and the RTS decreased 0.63% to 1,066.19.

“Today the stock market participants made a wise decision to take profit which pushed indices down from recent highs,” Andrei Dirgin, head of analytical department of Alfa-Forex, said.

Although prices for oil, Russia’s key export, rose, the MICEX exercised a downward correction, which is likely to be caused by technical factors, as the index fell from one-month highs, Timur Nigmatullin, analyst at Finam, said.

The indices were also hit by oversold exporting companies as the ruble strengthened. Trade was thin in anticipation of Victory Day celebrations that will be extended to Monday, Nigmatullin said.

Russian metals major Norilsk Nickel rose 2.45% to 10,500 rubles after the company’s board of directors approved selling an 11% stake that the company owns in power holding Inter RAO, Anton Fomin, analyst at InstaForex, said.

Another metals giant, Mechel, fell 1.19% to 46.58 rubles after Russia’s top lender Sberbank said on Tuesday that it insists on a basic restructuring plan of Mechel’s debt, and there were market rumors that Gazprombank may buy Mechel’s debt, Fomin said.

Russian car maker Sollers rose 1.79% to 418 rubles after its partner U.S. carmaker Ford Motor Company, with which Sollers has a joint venture, confirmed its interest in doing business in Russia.

On Thursday overbought oil may roll back putting the Russian stock market under pressure, Vasily Tanurkov, analyst at Veles Capital, said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.26	79.20	8.791
Gazprom	-0.69	155.25	4.618
Norilsk Nickel	+2.45	10500.00	3.903
VTB	-0.35	0.06831	2.903
Lukoil	+0.19	2660.00	2.103

(51.7574 rubles – U.S. $1)

End