Russian stocks close mixed as central bank cuts key rate

MOSCOW, Sep 6 (PRIME) – The Russian stocks closed mixed on Friday due to a mixed background and ruble strengthening after a central bank rate cut, which supported the RTS Index, analysts said.

The MOEX Russia Index fell 0.34% to 2,797.55 and the RTS increased 0.19% to 1,340.52.

“The MOEX Russia Index and the RTS Index did not show synchronized movements at the end of Friday…as the U.S. dollar-denominated RTS Index grew thanks to support of the ruble,” Yelena Kozhukhova, analyst at investment company Veles Capital, said.

The external background was also mixed with oil prices switching into the red zone. Investors in oil see no strong drivers for growth while waiting for monthly reports on oil reserves to be released next week. At the same time, trade on the European bourses was moderately optimistic, Kozhukhova said.

Andrei Kochetkov, senior analyst at Otkritie Broker, said that the European markets priced in hopes that the U.K. won’t leave the E.U. without a deal, while the Eurozone gross domestic product for April–June was revised to 1.2% from 1.1%.

The national market has enough players that considered its recent growth ungrounded. The national indices were slightly overbought, which prompted a slight profit taking. Still, the central bank’s decision to cut the key rate supported the national currency, Kochetkov said.

Kozhukhova also said that ordinary and preferred shares of oil company Surgutneftegas were among the loss leaders shedding 0.59% to 33.45 rubles and 1.84% to 35.475 rubles, respectively in correction after a rapid growth earlier in the week.

Dmitry Bedenkov, head of the research department at investment company Russ-Invest, said that multi-industry holding Sistema outperformed the market and grew 1.19% to 12.416 rubles thanks to its core owner Vladimir Yevtushenkov, who said that Sistema may sell subsidiary RTI, but does not plan to sell its stake in children goods retailer Detsky Mir as price offers are low. Investors were also pleased with the company’s decision not to delist mobile operator MTS from the New York Stock Exchange, Bedenkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.77	229.02	8.713
Gazprom	-0.72	234.49	5.830
Lukoil	+0.04	5526.50	3.813
Surgutneftegas	-0.59	33.45	3.016
Norilsk Nickel	-1.17	16198.00	2.515

(66.0528 rubles – U.S. $1)

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