Russian stocks close mixed on strong ruble, rising oil

MOSCOW, Jun 8 (PRIME) -- Russian stocks closed mixed on Wednesday due to a significant strengthening of the ruble, which propelled the U.S. dollar–denominated RTS index, but undermined the ruble-denominated MICEX index, analysts said.

The MICEX edged up 0.01% to 1,951.55 and the RTS increased 1.74% to 965.36.

“Today was the first day of a downward correction (of the MICEX index) after two days of growth,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

“The significant strengthening of the ruble, whose exchange rate rose by 2.5% in the last two days, while the U.S. dollar even fell to 63.7 rubles today was the reason for changing the situation. The foreign currency denominated RTS index is adding 1.1% moving towards 1,000.”

The Brent oil price rose 0.905% to U.S. $51.91 per barrel as of 6.10 p.m. Moscow time, according to the ICE exchange.

Andrei Dirgin, head of Alfa-Forex’ research department, said that a new record high in Brent futures for many months did not prompt buying in Russian shares.

“It is likely that local bulls fear a possible correctional fall of the oil market. The intra-day hike of the price of oil contracts without any rebounds looks like growth under the influence of closure of short positions. This increase is very likely to be replaced with a sharp contraction,” he said.

Metals giant Norilsk Nickel fell 1.13% to 8,873 rubles after CEO Vladimir Potanin said that the company’s net profit may not grow in 2016 and investors should prepare for a long period of unfavorable conditions at metals markets, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Shares of agricultural company Razgulay Group plunged 19.48% to 4.92 rubles after one of key shareholders and creditors – agricultural holding Rusagro – filed a bankruptcy suit against it, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.41	139.39	12.361
Gazprom	-0.54	146.95	4.316
Rosgosstrakh	+0.78	0.368	3.002
Lukoil	-0.04	2680.50	2.444
Rosneft	+4.14	342.50	2.436

(65.2089 rubles – U.S. $1)

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