Russian stocks close flat on lack of drivers, neutral background

MOSCOW, Oct 18 (PRIME) – The Russian stocks closed almost flat on Friday as the external background was mostly neutral, analysts said.

The MOEX Russia Index firmed 0.16% to 2,752.91 and the RTS increased 0.13% to 1,355.27.

“The Russian stock market consolidated around yesterday’s closing due to the lack of growth drivers,” Sofya Kirsanova, portfolio manager at managing company Raiffeisen Capital, said.

A slowdown of the Chinese economy in July–September was expected by the market, but it still prompted sales in the most cyclical sectors of the economy like oil production. “Nevertheless, the contraction (of shares of oil companies) should not be called significant, it is more likely profit taking after recent growth,” Kirsanova said.

“At the same time, the key European stock indices and futures for the U.S. indices fluctuated between the green and red zones. Western investors are not sure that a long-awaited deal on U.K. leaving the E.U. may be approved tomorrow. The news that the U.S. still plans to slap 25% import duties on 150 types of goods from the E.U. also played its negative role today,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

“From the fundamental point of view, investors tend to take their profit at the end of the week on theglobal stock floors. In spite of positive factors, like coordination of the Brexit draft deal and weakening of trade tensions between China and the U.S., there is still uncertainty in the global economy,” Veles Capital’s analyst Yelena Kozhukhova said.

Manzhos also said that shares of internet giant Yandex were among the gain leaders rising 0.36%, but were volatile following a recent significant contraction due to discussion of a bill to limit foreign capital in significant information resources to 20%.

Shares of multi-industry holding Sistema also grew 2% as investors were still pricing in the buyback news and a statement of core owner Vladimir Yevtushenkov that Sistema plans to return to its previous dividend policy in 2020, Manzhos said.

Below are the MOEX Russia Index’ five most active stocks on Friday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.88	235.55	10.035
Lukoil	+0.09	5720.00	4.101
Gazprom	0.00	228.00	3.778
Severstal	-1.45	881.00	2.135
Yandex	+0.36	1934.00	1.528

(64.0144 rubles – U.S. $1)

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