Russian stocks correct downward in line with oil prices

MOSCOW, Nov 25 (PRIME) -- Russian stocks experienced a downward correction on Friday after four consecutive days of growth as contraction of oil prices left the market without any growth drivers before the weekend, analysts said.

The MICEX fell 0.23% to 2,098.15 and the RTS decreased 1.01% to 1,018.51.

“On Friday the trend for growth of the Russian stock market switched into a slight correction, and the MICEX index lost some positions following contraction of the oil prices,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.

The Brent oil price lost 1.723% to U.S. $48.17 per barrel as of 6.20 p.m. Moscow time, according to the ICE exchange.

“As the date of the OPEC meeting is nearing, investors have less and less reason to doubt its result. The oil market is dominated by bears, as even people who hope for a positive outcome of the meeting are now afraid that the corresponding growth of the Brent oil price will inevitably lead to quicker re-launches of drilling rigs in the U.S.,” Kirsanova said.

Anastasiya Sosnova, a leading analyst at Bank Rossiysky Capital, said that the buying activity was low because of the absence of external drivers and uncertainty around the OPEC November 30 meeting.

Igor Kovalyov, an analyst at InstaForex group of companies, said that the change of mood on the Russian market may be explained by investors willing to take their profit before the weekend, besides the oil price fall.

Kirsanova also said that shares of uncut diamond mining giant ALROSA contracted 1.43% to 89.70 rubles today after a rock slide at the company’s Udachny mine, which accounts for about 10% of the company’s total output. The company said the slide had no impact on the mine’s operation.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that shares of state-owned oil major Rosneft looked weaker than the market and lost 1.46% to 341.50 rubles after the company announced plans to issue 1 trillion rubles of bonds. The company might need the money to buy back a 19.5% stake from the government, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.49	160.36	11.120
Gazprom	+0.13	151.31	2.698
ALROSA	-1.43	89.70	2.320
Bashneft	+0.56	3562.50	1.869
RusHydro	+8.14	0.89	1.834

(64.6279 rubles – U.S. $1)

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