Russian stocks close mixed on MICEX correction, oil price growth

MOSCOW, Dec 9 (PRIME) -- Overbought Russian stocks closed mixed on Friday as the MICEX index was unable to continue the rally due to profit taking, while the RTS index increased supported by the growth of oil prices, analysts said.

The MICEX edged up 0.07% to 2,208.53 and the RTS increased 1.16% to 1,110.14.

Irina Rogova, an analyst at Forex Club group of companies, said that the external background for the market was favorable with futures for U.S. and European stock indices growing. “Moreover, the oil price dynamics also improved the optimistic mood,” while the MICEX dynamics were largely based on profit taking, she said.

The Brent oil price rose 0.462% to U.S. $54.14 per barrel as of 6.00 p.m. Moscow time, according to the ICE exchange.

“The current cautiousness of the local market participants is connected with the fact that the MICEX and the RTS indices have long been overbought in the mid-term. A correctional sagging may start without any significant external or internal drivers,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said that the major contribution to the MICEX dynamics was done by shares in retailer Magnit and steelmaker Novolipetsk Steel (NLMK). The weight of Magnit and NLMK in the MICEX amounts 5.5% and 0.9%, respectively.

Magnit lost 2.86% to 10,423 rubles per common share, while NLMK fell 4.64% to 113 rubles on the news that core shareholder Fletcher Group, owned by tycoon Vladimir Lisin, plans to sell 1.5% in the company. In the mid-term, the news is positive as it will increase free-float to 16%, but now the sale creates excessive supply, Kirsanova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.40	169.66	12.605
VTB	+9.03	0.07523	4.892
Gazprom	-0.04	152.99	4.097
Rosneft	-1.34	370.80	2.713
Magnit	-2.86	10423.00	2.266

(63.3901 rubles – U.S. $1)

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