Russian stocks contract on falling oil prices

MOSCOW, Aug 17 (PRIME) -- The Russian stocks ended Wednesday’s trading session with a contraction as the fall of oil prices undermined the market, analysts said.

The MOEX Russia Index fell 0.90% to 2,188.56 and the RTS decreased 0.49% to 1,136.40.

“The Russian stock market lost its morning growth and switched into correction later in the day. … The shares decreased against the background of falling oil prices. The Brent oil price remained in a downward channel and fell below U.S. $92 per barrel. At the same time, a 0.9% strengthening of the ruble against the U.S. dollar supported the exporters,” Vladimir Lyashchuk, senior analyst at Promsvyazbank, said.

Finam analyst Alexei Kalachyov said that the RTS Index reflected strengthening of the ruble against the U.S. dollar.

Gas giant Gazprom, one of the market bellwethers, lost 2.65% to 176.50 rubles as investors priced in a 13.2% decrease of production and a 36.2% fall in exports to the non-CIS countries. The gas prices in Europe are high, but Gazprom does not sell gas on the spot market, and reduced pumping under long-term contracts. Novatek wins from spot prices, and its shares lost only 0.51% to 1,095 rubles, Kalachyov said.

“The Russian stock market started the day in the green zone, but quickly lost momentum. In the second half of the day, the ruble indicator (or the MOEX Russia Index) switched into the red zone because of the ruble’s strengthening and because of corrections in some securities that were among the leaders the day before,” Otkritie Research leading analyst Andrei Kochetkov said.

National flagship carrier Aeroflot outperformed the market to fall only by 0.22% to 27.02 rubles after the launch of sale of tickets to the Seychelles. The company also disclosed tariffs for retirees that will be in effect for the flights of Aeroflot and Rossiya Airlines, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-2.65	176.50	4.330
Sberbank	-1.50	124.50	4.134
Novatek	-0.51	1095.00	2.321
Polymetal	+6.18	388.50	2.314
Lukoil	-2.76	3907.00	2.008

(61.4247 rubles – U.S. $1)

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