Russian stocks close mixed on corporate news, currency sale decision

MOSCOW, May 25 (PRIME) -- The Russian stock market closed mixed on Wednesday, as the ruble-denominated MOEX Russia Index was supported by the compote news and the government’s decision to oblige exporters to sell only 50% of their foreign currency revenue instead of 80%, while the RTS sunk on the ruble weakening, analysts said.

The MOEX Russia Index rose 2.05% to 2,340.18, and the RTS decreased 2.72% to 1,239.07.

“On Wednesday, the Russian stock market was mixed, and this time, its ruble indicator switched into the green zone thanks to dividend expectations and an optimistic mood of global investors. On Thursday, investors will be able to price in the dividend news on Gazprom and Rosneft (if there is such news), and Detsky Mir and Sovcomflot are to make decisions on their payments as well,” Veles Capital’s analyst Yelena Kozhukhova said.

Yegor Zhilnikov, senior analyst at Promsvyazbank, said that the MOEX Russia Index experienced a “bullish” mood of investors due to a significant weakening of the ruble. It was caused by the expectations from the Thursday meeting of the central bank’s board of directors, which may reduce the key rate to 10–12% annually. “As a result, the MOEX Russia Index returned to the corridor that has been a common one since the end of April,” he said.

The Finance Ministry has lately eased the demand on sales of foreign currency revenue for exporters. Now, they are obliged to sell only 50% of their foreign currency revenue instead of 80%, which, coupled with a significant role that the U.S. dollar plays in revenue of the oil companies, has a serious positive impact on the shares of Lukoil, Rosneft, and Tatneft, Zhilnikov said. The companies gained 5.23%, 5.23%, and 4.46%, respectively.

Dmitry Babin, stock market expert at BCS World of Investment, said that the ruble assets paid no attention to the decision of the U.S. Department of the Treasury not to prolong Russia’s license for serving the sovereign debt in U.S. dollars in the sanctions conditions.

“This could cause Russia’s first default on sovereign debt since 1918. But, frankly speaking, the unfavorable consequences of this event will come to fruition in a long run, and it will barely have any direct impact on the financial and economic situation in the country in the several coming months,” Babin said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+2.11	271.40	10.080
Sberbank	+0.44	124.15	6.588
Sberbank prefs	-2.32	115.99	1.955
Lukoil	+5.23	4148.00	1.380
Rosneft	+5.23	378.00	1.363

(56.9690 rubles – U.S. $1)

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