Raw materials stocks boost oversold MICEX, RTS falls with ruble

MOSCOW, Jul 31 (PRIME) -- The Russian stock market closed mixed on Friday, as the oversold MICEX rose supported by energy and chemical stocks on the back of the ruble weakening, which put the RTS under pressure, analysts said.

The MICEX rose 1.97% to 1,669.00 and the RTS decreased 1.03% to 858.82.

“Although oil is falling, the MICEX demonstrates positive dynamics due to the currency appreciation of raw companies’ shares that comprise the index, on the back of the ruble weakening,” Timur Nigmatullin, analyst at Finam, said.

Stocks of exporters in the energy and chemical industry particularly contributed to market growth, Sofya Kirsanova, analyst at Raiffeisen Capital, said.

“At the same time, shares of the banking sector are under pressure of the news of tighter U.S. sanctions,” Nigmatullin said.

The sanctions were also imposed against units of Vnesheconombank (VEB).

“The RTS index decreased sharply due to a continuing ruble depreciation against the U.S. dollar,” Bank Obrazovanie’s senior analyst Vitaly Manzhos said.

A central bank decision to cut its key rate 0.5% also increased volatility on the market Friday, Alexander Kostyukov, analyst at Veles Capital, said.

Surgutneftegas, which has significant financial reserves in foreign currency, rose 3.22% to 33.995 rubles per common share on the background of the ruble fall, he said.

Steel maker Severstal, one of investors’ safe havens when oil and the ruble fall, added 3.60% to 687.5 rubles, while fertilizer producer Uralkali rose 3.71% to 162.3 rubles and another fertilizer producer Acron increased 2.82% to 2,556 rubles, also supported by very strong financial results under Russian Accounting Standards (RAS) for January–June, as its revenues rose 42% in the period, the analyst said.

Oil company Lukoil jumped 3.96% to 2,537.6 rubles on the back of the ruble weakening to over 61 against the dollar by the closing bell.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.14	72.30	10.954
Gazprom	+1.93	142.50	4.394
Surgutneftegas pref	+1.81	37.75	3.652
Lukoil	+3.96	2537.60	3.222
Norilsk Nickel	+0.66	9427.00	2.158

(58.9906 rubles – U.S. $1)

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