Russian stocks close higher as geopolitical risks ease

MOSCOW, Nov 15 (PRIME) -- The Russian stock market edged up on Monday as the geopolitical risks have eased, so that even the falling oil price was unable to drag the market down to the red zone, analysts said.

The MOEX Russia Index rose 0.33% to 4,135.14 and the RTS increased 0.40% to 1,791.44.

“The Russian market had been growing since the start of the trading session due to a slight easing of geopolitical risks. Concerns that the risks will come true the past weekend vanished, and statements made by the sides of the possible conflict signal possible easing of the tension,” Dmitry Babin, stock market expert at BCS World of Investment, said.

The external background also supported recovery of the Russian market, as the majority of foreign bourses rose during the day, but the oil price contracted as the pandemic in the E.U. deepened, Babin said.

“The Russian stock market tried to regain some ground after losses of the previous week,” Otkritie Research’s senior analyst Andrei Kochetkov said.

”The geopolitical stories that pummeled the stock market and the ruble before did not lead to any extreme consequences, this is why the indices and the ruble tried to regain their positions. Also, it is worth noting that the retail sales and industrial output in China grew, even though contraction of the indicators was expected.”

The oil prices were under the pressure, and are likely to remain so due to a possible decrease in demand for crude. Austria and the Netherlands imposed restrictions for unvaccinated people, while Germany and some other countries may impose similar measures. Investors are also concerned that the U.S. would continue selling oil from its strategic reserves, Kochetkov said.

Yegor Zhilnikov, senior analyst at Promsvyazbank, said that the shares of fertilizer producers rallied again as the prices for nitrogen fertilizers hit records again. PhosAgro gained 2.96% to 5,853 rubles, while Acron grew by 6.93% to 11,048 rubles.

National flagship carrier Aeroflot rose by 1.94% to 67.26 rubles due to softening of the sanction rhetoric against the airline, Zhilnikov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Surgutneftegas	-6.55	43.80	22.488
Gazprom	+1.62	339.00	19.758
Sberbank	-0.79	344.86	19.242
Lukoil	+0.95	6943.50	5.973
Norilsk Nickel	+1.29	22384.00	5.157

(71.8118 rubles – U.S. $1)

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