Russian stocks contract on global economic slowdown, oil price fall

MOSCOW, Mar 22 (PRIME) -- Russian stocks contracted on Friday in line with other international bourses as macroeconomic statistics again showed a slowdown in the global economy, while contraction of oil prices became another negative factor for the market, triggering sales in the ruble and in the RTS index, analysts said.

The MOEX Russia Index fell 0.60% to 2,492.70 and the RTS decreased 1.96% to 1,213.40.

“The external background has worsened significantly, and macroeconomic statistics from Asia to Europe shows a slowdown of economic growth. The probability of a rough breakup of the U.K. and Europe has increased. This background left the Russian market with no motivation to purchase shares,” Andrei Kochetkov, Otkritie Broker’s analyst, said.

Sofya Kirsanova, analyst at managing company Raiffeisen Capital, also said that releases of weak macro statistics resulted in sales of Russian shares.

“Contraction of PMI indices in the German industry and in the E.U. in general in March scared global investors, once again reminding them about a slowdown of the economy not in Europe, but in the world as well. This, coupled with weakening of the euro against the U.S. dollar, pushed the prices for all commodities, including oil and basic metals, down,” she said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the RTS index contracted more than the MOEX Russia Index due to a correctional fall of the ruble.

“Speaking of the MOEX Russia Index, it was unable to continue yesterday’s attempt to break through the range formed over the last six weeks. Intraday contraction of prices for oil futures became a slight negative factor for the Russian stock market,” Manzhos said.

Kochetkov also said that producer TMK were among the gain leaders, adding 16.95% to 55.20 rubles on the news of a sale of its U.S. subsidiary IPSCO Tubulars to Tenaris for $1.209 billion.

Manzhos also said that coal producer Raspadskaya was one of the loss leaders with the shares falling 3.78% to 134.80 rubles after the company’s board of directors decided against paying final dividends for 2018.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.38	207.70	10.313
Lukoil	+0.60	5793.50	4.049
Gazprom	-1.96	152.29	3.555
Norilsk Nickel	-0.07	14280.00	2.219
Rosneft	-0.27	408.40	0.991

(63.7420 rubles – U.S. $1)

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