Russia stocks fall ahead of Fed minutes publication, low oil price

MOSCOW, Oct 12 (PRIME) -- Russian stocks contracted on Wednesday as investors were wary ahead of publication of minutes of the latest meeting of the U.S. Federal Reserve System (Fed), while a falling oil price left the market without support, analysts said.

The MICEX fell 0.40% to 1,993.35 and the RTS decreased 0.95% to 995.96.

“Today, the minutes of the September meeting of the Fed will be published after the closure of the Russian stock market. Worry exists about risky assets. The latest rhetoric of representatives of the American regulator was rather aggressive and contained hints at a possible swift increase of the key rate,” Irina Rogova, an analyst at Forex Club group of companies, said.

The oil prices are also a restraining factor for the Russian market. “Verbal interventions about a possible freeze of oil production do not provide a significant impact on the commodity anymore,” Rogova said.

The Brent oil price fell 1.334% to U.S. $51.72 per barrel as of 6.30 p.m. Moscow time, according to the ICE exchange.

Andrei Dirgin, head of the research department at Alfa-Forex, said that Russian stocks were also under pressure from cancellation of President Vladimir Putin’s visit to France, perceived as a signal of worsening relations with the West. The market is now actively discussing the possibility for introduction of new sanctions against Russia, he added.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that shares of steelmaker Severstal fell 0.06% to 816.50 rubles due to weak operating results. Investors were displeased with a noticeable fall of the company’s sales of coal and iron ore concentrate, while Severstal also confirmed plans to suspend operation of the Severnaya coal mine, he said.

Shares of oil companies Rosneft and Bashneft rose 0.30% to 363.15 rubles and 1.30% to 3,125 rubles, respectively, after the Economic Development Ministry said that the sale of the government’s 50.0755% stake in Bashneft to Rosneft had been closed, and the ministry is finishing preparations necessary for privatization of 19.5% in Rosneft.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.39	149.20	5.305
Gazprom	-0.65	138.07	4.443
Rosneft	+0.30	363.15	1.512
Lukoil	+0.43	3117.50	1.475
Norilsk Nickel	-0.19	9432.00	1.124

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