Russian stocks close mixed as oil prices, ruble fall

MOSCOW, May 4 (PRIME) -- Russian stocks closed mixed on Thursday following contraction of oil prices, while a slump of the ruble supported the MICEX index, analysts said.

The MICEX rose 0.26% to 1,998.87 and the RTS decreased 1.38% to 1,081.22.

“The MICEX index grew today mainly due to the weakening ruble, while the national currency and the RTS index fell thanks to cheapening oil…which was under pressure from yesterday’s report of the U.S. Department of Energy that not only showed U.S. oil reserves falling by 900,000 barrels instead of expected 4.1 million barrels, but reflected an increase in shale oil production,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

The Brent oil price fell 2.855% to U.S. $49.38 per barrel as of 6.25 p.m. Moscow time, according to the ICE exchange, the lowest figure since November 2016.

“The energy market was also pressured by concern that a fight will soon start for the market share to be freed by OPEC and others after their production cut deal. The U.S. is raising its oil production. Moreover, it was reported that countries that partake in the output reduction deal softened their fulfillment of the deal to 90% in April from 92% in March. It looks like producers have considered the threat of losing the market share,” Irina Rogova, an analyst at Forex Club group of companies, said.

Sergei Melnikov, an analyst at Forex broker Global FX, said that the MICEX was also supported by a favorable external background as the European floors grew on expectations of Emmanuel Macron’s victory in upcoming presidential elections in France.

Andrei Kochetkov, an analyst at Otkritie Broker, said that shares of multi-industry holding Sistema were among the gain leaders and grew 3.06% to 14.49 rubles as the market reassessed its risks connected with a 107 billion ruble suit filed recently against the company by oil major Rosneft.

The fall of the ruble helped metal exporters, and Norilsk Nickel gained 0.15% to 8,701 rubles, Severstal rose 0.46% to 780.60 rubles, Novolipetsk Steel (NLMK) increased 0.86% to 107.51 rubles, and Magnitogorsk Iron and Steel Works (MMK) grew 1.08% to 35.985 rubles, Kochetkov said.

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.48	165.50	6.238
Gazprom	-0.65	134.93	4.326
Sistema	+3.06	14.49	2.599
Lukoil	+0.36	2780.00	2.152
MTS	-0.32	246.50	2.045

(57.0927 rubles – U.S. $1)

End