Rising oil prices, European markets support Russian stocks

MOSCOW, May 24 (PRIME) -- Russian stocks increased on Tuesday following rising oil prices and European bourses, analysts said.

The MICEX went up 0.84% to 1,884.12 and the RTS increased 1.36% to 891.48.

“Reviving oil prices and the positive mood on European stock exchanges pushed the Russian stock market higher,” Veles Capital’s analyst Alexander Kostyukov said. He attributed the intraday growth of oil prices to a statement of Qatar’s Energy and Industry Minister Mohammed Saleh Al-Sada that oil prices need to rise to U.S. $65 per barrel.

Forex Club analyst Irina Rogova said that a rise in futures for American and Asian indices also backed the stock market.

Investors’ expectations that EIA data will show that the U.S. oil reserves fell last week was another growth factor for oil prices, she said.

Yevgeny Loktyukhov, an analyst at Promsvyazbank, said that investors also welcomed statements made by representativeû of Iran that the oil market is stabilizing, and a stronger ruble. The national currency strengthened against the U.S. dollar to about 66.6 by the closing bell. Oil tested $49 per barrel of Brent.

Russian Grids surged 6.72% to 0.842 rubles per preferred share due to expectations that the company will pay high dividends, the analyst said.

Federal Grid Company of Unified Energy Systems (FGC UES) jumped 5.65% to 0.119 rubles after publishing strong financial results. The company’s net profit under International Financial Reporting Standards (IFRS) soared 80% to 16.421 billion rubles in January–March.

Uncut diamond mining giant ALROSA rose 0.86% to 73.78 rubles after Economic Development Minister Alexei Ulyukayev said that the government still plans to sell a part of the state stake in the company until the end of June, he said.

Cherkizovo Group, which received an IFRS net loss of 441 million rubles in January–March against a net profit of 2.948 billion rubles in the same period of 2015, fell 0.66% to 899 rubles.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that retailer Magnit, which rose 1.95% to 9,150 rubles, was likely supported by the news that the company’s board of directors will consider a dividends policy on Friday.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.64	123.50	6.987
Gazprom	+1.41	146.35	3.484
Lukoil	+0.36	2656.50	2.068
FGC UES	+5.65	0.11938	1.017
Moscow Exchange	+1.06	105.10	0.924

(67.0475 rubles – U.S. $1)

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