Rising oil, metal price, corporate data backs Russian stocks

MOSCOW, Jul 4 (PRIME) -- Russian stocks increased on Monday, supported by a rising Brent crude price, corporate data and higher metals prices, analysts said.

The MICEX rose 0.57% to 1,907.48 and the RTS increased 0.81% to 940.85.

“The Russian stock market has started the week with growth, taking lead from some improvement in the commodity segment,” InstaForex analyst Igor Kovalyov said.

The Brent price rebounded to U.S. $50 per barrel on June 1 and consolidated above this level on Monday, the analyst said, adding that nevertheless, weak European stock indices limited the Russian stock market rise.

Mikhail Krylov, head of research at Golden Hills Capital AM, said that the Russian stock indices were supported by corporate news and rising metal prices.

Nickel producer Norilsk Nickel rose 4.3% to 8,861 rubles and precious metals producer Polymetal grew 3.55% to 919.5 rubles per share.

Aluminum giant RUSAL, which increased 5.59% to 211.5 rubles per Russian Depositary Receipt (RDR), was also backed by rumors concerning Onexim, the analyst said. Earlier media reported that Onexim Group, which holds stakes in RUSAL, plans to sell its Russian assets. Bloomberg reported later that Onexim’s CEO Dmitry Razumov denied it.

Oil and gas pipe producer TMK, which will supply pipes for drilling in Arctic, rose 5.79% to 47.5 rubles per share, Krylov said. Earlier in the day, the company said it had supplied the first batch of pipes.

Kovalyov said that Federal Grid Company of Unified Energy Systems (FGC UES) jumped 6.36% to 0.16821 rubles after the company decided to pay generous dividends.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that troubled airline Transaero fell 12.1% to 7.12 rubles in correction after rallying on rumors that operations of the company may be resumed.

Mobile operator MTS fell 3.92% to 235.45 rubles and steel producer Severstal went down 2.15% to 684.1 rubles on dividend cut, the expert said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.56	134.60	5.119
Norilsk Nickel	+4.30	8861.00	3.066
Gazprom	+1.11	141.60	2.711
Lukoil	+1.40	2745.00	1.283
ALROSA	+1.46	69.50	1.099

(64.0165 rubles – U.S. $1)

End