Russian stocks close mixed on ruble rise, EU keeping sanctions

MOSCOW, Mar 19 (PRIME) -- Russian stocks closed mixed on Thursday on a decision of the E.U. to keep sanctions at least until the end of 2015 and support from the ruble strengthening due to increased demand for the national currency during a mineral extraction tax period, analysts said.

The MICEX fell 1.21% to 1,612.31 and the RTS increased 0.55% to 845.68.

“News from Brussels partially spoiled moods of investors. It was stated that the European Union plans to keep already imposed sanctions at least until the end of this year,” Alexander Yegorov, an analyst at TeleTrade, said.

Investors also preferred taking profit after a 2-day growth of the MICEX, and it led to the index decline, Andrei Dirgin, head of Alfa-Forex’ analytical department, said.

The dollar-denominated RTS was technically supported by the ruble strengthening after the euro decreased on a decision of the European Central Bank to initiate a 1 trillion euro quantitative easing program, Yegorov said. The dollar weakened after the U.S. Federal Reserve decided against increasing the key rate in the short run late on Wednesday, he said.

The demand for the ruble rose on the background of a mineral extraction tax period in March and this also supported the national currency rate in line with a fall in demand for foreign currency to repay external liabilities or to import goods for resale or production needs, Sofiya Kirsanova, analyst at Raiffeisen Capital, said.

AvtoVAZ was among growth leaders and grew 10.60% after presidential aide Andrei Belousov said largest domestic carmakers may avoid serious shocks and staff layoffs if car production falls only by 20–25% in 2015.

MMK, which published weak financial results, was among loss leaders, and decreased 4.16%.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.55	64.90	8.181
Gazprom	-2.45	136.81	5.745
Lukoil	-1.56	2689.80	3.235
Norilsk Nickel	-2.34	10410.00	3.040
Rosneft	-2.26	237.05	1.335

(61.3483 rubles – U.S. $1)

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