Russian stocks close mixed on rising ruble, strong US statistics

MOSCOW, Aug 5 (PRIME) -- Russian stocks closed mixed on Friday as strong U.S. statistics and growing U.S. dollar killed demand for risky assets, but the RTS index was supported by a strong ruble even though the oil prices fell, analysts said.

The MICEX slipped 0.03% to 1,944.31 and the RTS increased 0.86% to 935.46.

“The external background was not too optimistic for risky assets. The employment data for the non-agricultural sector in the U.S. turned out to be significantly better than expected. The economy created 255,000 new jobs compared with the expected 180,000. Moreover, the hourly wage increased by 0.3% on the month,” Irina Rogova, an analyst at Forex Club group of companies, said.

This statistics prompted a change in expectations of the U.S. Federal Reserve System’s (Fed’s) monetary policy, and increases the possibility of the Fed raising its key rate in September, Rogova said.

“The significant increase of the RTS index was based on a noticeable strengthening of the ruble against the U.S. dollar,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The ruble grew by 2.7% from 67 per U.S. dollar, Sofiya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

“On the one hand, the strengthening could have been prompted by a 6.2% increase in oil prices over the past three days, but on the other hand – high effective rates in Russia resulted in an inflow of money to Russia-dedicated funds this week on the background of a slowdown of inflation and no hints from the central bank about a possible key rate increase at its next meeting,” Kirsanova said.

Common and preferred shares of the country’s top lender Sberbank outperformed the market and grew 1.13% to 138.69 rubles and 0.29% to 97.51 rubles, respectively. The securities were supported by the ruble’s increase and strong financial results, as the company’s net profit under Russian Accounting Standards (RAS) tripled in January–July, Manzhos said.

Magnitogorsk Iron and Steel Works (MMK) hit their long-term highs and rose 1.11% to 30.59 rubles after the company said its net profit under International Financial Reporting Standards (IFSR) rose 3.8% on the year to U.S. $486 million in January–June and surged more than twice on the quarter to $329 million in April–June, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+1.13	138.69	6.151
Gazprom	-0.88	135.50	3.177
Magnit	+2.30	10690.00	1.656
Lukoil	-0.86	2815.00	1.194
Norilsk Nickel	+0.45	9778.00	1.121

(66.3941 rubles – U.S. $1)

End