Russian stocks close mixed on ruble weakening

MOSCOW, Jun 29 (PRIME) -- The Russian stock market closed mixed on Thursday, as the MOEX Russia Index was supported and the RTS depressed by the weakening ruble, analysts said.

The MOEX Russia Index grew 0.56% to 2,796.41, and the RTS index decreased 0.77% to 1,006.83.

"Strengthening of the U.S. dollar against the ruble supported the exporters’ prices as it helps growth of their revenue in the ruble equivalent. Other Russian oil and gas sector companies also rose," Freedom Finance Global analyst Vladimir Chernov said.

Sofya Kirsanova, portfolio manager at managing company Pervaya, said that the ruble was hurt by the end of the tax period and by possible speculative purchases on the back of strong statistics indicating imports growth.

The Brent oil returned to U.S. $74 per barrel after continuing Wednesday’s growth after the U.S. Energy Ministry reported a decrease of the oil reserves by 9.6 million barrels, the analyst said. Further growth is unlikely due to an uncertainty about the global economy, and the plans and comment of central banks across the globe.

Natalya Milchakova, leading analyst at Freedom Finance Global, said that fears of a global recession have significantly weakened, which was perceived positively by investors.

At the same time, a proposal by Russia's State Duma to raise the personal income tax rate for the wealthy people made the Russian market anxious. The central bank might raise the key rate in July, which is also a negative factor for the market, the analyst said.

According to Chernov, Magnit corrected downwards after soaring on Wednesday on the news about an increase of a share buyback.

MTS kept on weakening after closing the shareholder register for dividends and lost 0.43%, he said.

Polyus declined 0.56% following a gold price fall by 0.48% to $1,913 per Troy ounce. Segezha grew 5.09% thanks to an increase in timber prices, Chernov said. According to Milchakova, Segezha was also supported by plans to sell products in some African states.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.43	240.7	6.006
Magnit	-0.84	5146.5	5.781
Surgutneftegas pref	+2.36	41.2	3.724
Lukoil	+0.53	5135	3.453
Gazprom	-0.03	168	3.858

(85.6192 rubles – U.S. $1)

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