Russian stocks close mixed on ruble rise, upbeat govt statements

MOSCOW, Apr 8 (PRIME) -- Russian stocks closed mixed on Wednesday as the downward correction of the MICEX continued as the market revalued exporters’ shares due to the ruble rise, while the RTS grew, supported by the national currency growth and politicians’ upbeat economic statements, analysts said.

The MICEX fell 0.71% to 1,683.63 and the RTS increased 1.76% to 988.30.

The MICEX was under pressure from a negative revaluation of exporters’ stocks, which account for the bulk of the index, on the back of the significant ruble strengthening, Timur Nigmatullin, analyst at Finam, said.

“The MICEX exercises a correction after its failed effort to break through 1,700 points, while the RTS fully benefits from the growing Russian currency,” Alexander Yegorov, analyst at TeleTrade, said.

Economic Development Minister Alexei Ulyukayev’s comments that the currency is rebounding to its fundamental level and that the expected economic slump is overestimated as well as words of Deputy Finance Minister Maxim Oreshkin that inflation has reached its maximum and is unlikely to exceed 17% this year supported the currency and market, according to Yegorov.

The visit of Greek Prime Minister Alexis Tsipras to Moscow was another factor which backed the dollar-denominated RTS, Natalya Samoilova, the head of the Golden Hills-Kapital’s analytical department, said.

MMK, iron ore importer, rose 1.07% to 15.245 rubles on news that China may provide subsidies to local producers of iron ore in April already due to a significant decrease of global iron ore prices that may push them down further, Sofya Kirsanova, analyst at Raiffeisen Capital, said.

Steel producer Severstal, which has own iron ore production, fell on this news by 2.56% to 620 rubles, according to the analyst.

The publication of the volume of the foreign exchange and gold reserves at 3.00 p.m. Moscow time on Thursday will have an impact on the stock market, because it will show how much strength is left to support the national currency, Gleb Zadoya, head of Profit Group’s analytical department, said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.29	69.40	8.608
Gazprom	+0.73	147.27	4.551
VTB	-0.23	0.06000	3.407
Lukoil	-1.25	2755.00	2.234
Norilsk Nickel	-1.37	9986.00	1.896

(55.3328 rubles – U.S. $1)

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