Russian stocks decline on falling ruble, profit taking

MOSCOW, Dec 21 (PRIME) -- The Russian stock market decreased on Wednesday on the back of a deep weakening of the ruble and a start of profit taking, while some shares were affected by the news on their dividends, analysts said.

The MOEX Russia Index decreased 0.15% to 2,116.13, and the RTS index fell 2.81% to 940.03.

"The mood on the foreign floors improved on Wednesday, but the increase cannot be called anything more than correction at the moment. The MOEX Russia Index and the RTS index demonstrated mixed dynamics and fell from daily peaks," Veles Capital analyst Yelena Kozhukhova said.

"The Russian market continued to track various corporate stories and be supported by a weakening ruble in the context of the exporters' dynamics."

The analyst added that the MOEX Russia Index did not manage to stay in the green zone due to a start of profit taking in the evening.

The European markets' dynamics was moderately positive, as the Euro Stoxx 50 index gained about 0.9% by the middle of the Russian session. The nearest Brent and WTI futures added about 1.5%, returning to recent peaks of U.S. $83 and $77.50 respectively. The U.S. markets were moderately positive, as the S&P 500 futures added about 0.5%.

Finam analyst Alexei Kalachyov said that the foreign markets started to consolidate after losses caused by a key rate rise by the U.S. Federal Reserve System (Fed) and by a hawkish rhetoric of its officials.

According to Kozhukhova, Polyus and Polymetal (+1.51%) benefitted from the decreasing ruble. Gazprom Neft trading with the January–September dividends until a cutoff of December 30, rose 1.6%.

MMK declined 2.85% after warning of a lack of plans to return to dividend payment any time soon. RUSAL and EN+ Group corrected downwards 2.97% and 1.65%, she said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.72	137.29	5.754
Polyus	+1.24	7900	3.315
Lukoil	-1.08	4032	2.648
Gazprom	-0.92	157.48	2.418
Novatek	+1.1	1065	1.256

(69.0037 rubles – U.S. $1)

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