Russian stocks decline on Friday on oil market fears

MOSCOW, Jul 15 (PRIME) -- The Russian stock market decreased on Friday on investors’ fears that the global oil market will remain oversupplied in spite of higher global stocks and oil prices, analysts said.

The MICEX edged down 0.08% to 1,940.85 and the RTS decreased 0.90% to 963.70.

“Russian indices were under pressure on Friday… At the same time, external conditions were positive today. U.S. indices were supported by strong retail sales data. European and Asian stock futures also rose. Brent price revived within this week’s band,” Forex Club analyst Irina Rogova said.

Ilya Frolov, an analyst at Promsvyazbank, said, “A moderate rise in oil prices, which hit U.S. $48 per barrel, did not influence the ruble, which strengthened significantly yesterday, and did not increase interest in buying shares of oil and gas companies.”

Rogova said that investors were afraid of the excess oil supply, because OPEC countries and the U.S. are increasing output, although the global oil demand is also rising.

Preferred stock of oil and gas producer Surgutneftegas plunged 13.04% to 36 rubles on a dividend cut-off, InstaForex analyst Igor Kovalyov said.

Gas giant Gazprom, which rose 2.20% to 147.37 rubles, was likely supported by plans of the board of directors to consider buying back 3.6% of its shares from Vnesheconombank (VEB) at 152.5 rubles per share, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Kovalyov said Gazprom also rose on statements that German companies may take part in Russian liquefied natural gas (LNG) project Baltic LNG and the company holds negotiations with Linde, Siemens, BASF and other potential partners.

Retailer Dixy, whose sales grew 25% to 28 billion rubles in June, rose 2.5% to 320.3 rubles, Frolov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Surgutneftegas pref	-13.04	36.00	8.197
Sberbank	-1.34	138.12	7.409
Gazprom	+2.20	147.37	5.771
Lukoil	+0.81	2792.50	1.666
ALROSA	-0.69	70.50	1.299

(63.5773 rubles – U.S. $1)

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