Russian stocks close mixed on favorable background as ruble falls

MOSCOW, Dec 19 (PRIME) -- Russian stocks closed mixed on Wednesday as the MOEX Russia Index was supported by ruble plunge and positive external background, while investors await the U.S. Federal Reserve System (Fed) to make its final move of the year, investors said.

The MOEX Russia Index rose 0.35% to 2,358.58 and the RTS decreased 0.58% to 1,099.63.

“The MOEX Russia Index was in the consolidation mode for the major part of the day, and it started to grow only at the end of the day supported by the positive condition of the Western bourses and by the weakening ruble. As a result, the MOEX Russia Index managed to claw back morning losses and switch into the green zone,” Alexander Sidorov, investment company Veles Capital’s analyst, said.

Andrei Kochetkov, Otkritie Broker’s analyst, said that the ruble fell after the Finance Ministry cancelled its auction of OFZ-PD 26223 bonds as the market showed no demand at the announced yield, which has become the first cancellation of an OFZ auction since October 3.

“Trade on the U.S. stock floors started with growth of major indices, which rose by about 1% thanks to an optimistic investor view on trade negotiations with China…Trade in Europe was also moderately optimistic, and the Euro Stoxx 50 recently gained 0.4%,” Yelena Kozhukhova, Veles Broker’s analyst, said.

But in general, investors waited for the Fed’s meeting on the monetary policy. The regulator is likely to raise its rates by 25 basis points to 2.50% for the fourth time this year, but the Fed’s comment on its policy in 2019 will be the most valuable information in the report, which may support or spoil investor mood, Kozhukhova said.

Kochetkov also said that shares of precious metals producers Polymetal International and Polyus gained 3.09% and 2.42%, respectively, as investors expected the Fed to soften its future policy.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.21	188.85	11.576
Lukoil	-0.30	4910.00	4.582
Gazprom	+0.72	152.98	3.029
Norilsk Nickel	-0.66	13125.00	2.017
Rosneft	+1.47	418.20	1.644

(66.7454 rubles – U.S. $1)

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