Russian stocks decrease as IT sector corrects downwards

MOSCOW, Jan 24 (PRIME) -- The Russian stock market declined on Tuesday amid profit taking caused by a downward correction in the IT sector, analysts said.

The MOEX Russia Index decreased by 0.57% to 2,172.75, and the RTS index fell by 0.83% to 990.41.

"The IT sector grew significantly yesterday on the news that the companies suggested the Digital Development Ministry retain a zero profit tax for IT companies or to set it at 3% indefinitely from 2024," Andrei Kochetkov, leading analyst for global research at Otkritie Research, said.

"However, industry proposals are only proposals, rather than a government decision. This means a strong trend in the IT shares was met by profit taking in accordance with the current logic."

As a result, the MOEX Russia Index almost reached 2,200 in the first half of the day, but later sank, he said.

The oil prices increased, as the euro zone business activity index signaled low recession risks, according to Kochetkov. A Reuters report citing OPEC+ sources that the alliance could maintain the deal terms in February did not affect the prices, because the market expects an E.U. embargo on Russian oil.

According to Veles Capital analyst Yelena Kozhukhova, the market shrugged off European statistics, because it did not reduce the chance of an interest rate increase in the region by 50 basis points at the next central bank's meeting.

The shares of gold producers were the gain leaders, as the gold prices have climbed to a maximum since April 2022, Kochetkov said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.25	153.12	10.962
Polyus	+2.21	8406	3.095
Gazprom	-1.32	157.95	2.247
Norilsk Nickel	-1.59	14742	1.298
Lukoil	-0.55	3950.5	1.024

(68.6288 rubles – U.S. $1)

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