Russian stocks correct down on low oil price

MOSCOW, Feb 19 (PRIME) -- Russian stocks corrected downward on Friday after several days of growth amid lower oil prices, analysts said.

The MICEX fell 0.77% to 1,793.37 and the RTS decreased 3.57% to 725.98.

“On Friday, the Russian stock market corrected down after five days of growth…The bulls took a break, as meetings of OPEC-member countries brought no breakthrough, and Thursday’s data of the U.S. Department of Energy once again signaled higher reserves of both crude oil and gasolines,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

The Brent oil price contracted 3.409% to U.S. $33.15 per barrel as of 6.06 p.m. Moscow time, according to the ICE exchange.

“Yesterday’s euphoria at the local market changed to sales from the start of trade…It is obvious, that support of the Russian market from important external indicators could not last forever. So, yesterday evening’s deterioration of the external background was a definite signal for negative trade,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

During the day, all major bourses in the U.S., Europe and Asia remained in the red zone.

Shares of oil company Bashneft went up 4.73% to 2,515.50 rubles after Deputy Energy Minister Alexei Teksler said that a sale of a controlling stake in the company to a single strategic investor is the best option for the company, Manzhos said.

Among second tier companies, a noticeable increase was registered in some metals and mining companies: common shares of Uralskaya Kuznitsa and Southern Kuzbass Coal Company grew 22.32% to 5,590 rubles and 16.03% to 760 rubles, respectively. Both companies are affiliates of metals and mining group Mechel, and purchases in them may be connected to restructuring of the parent company’s debts, Manzhos added.

Internet giant Yandex lost 2.47% to 989 rubles as the company said it plans to buy some 80,000 square meters of a business-center in Moscow, and will occupy 65% of them and rent out the rest. The debt of the lender will be transferred to the company’s account, and Yandex will also issue 12.9 million shares, washing out stakes of current shareholders, Kirsanova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.17	101.50	17.518
Gazprom	-0.80	136.90	3.479
Lukoil	-0.97	2540.00	2.740
Norilsk Nickel	-1.52	8745.00	1.867
Magnit	+0.35	10354.00	1.741

(75.4575 rubles – U.S. $1)

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