Russian stocks decrease as oil price falls below $55 per barrel

MOSCOW, Jan 18 (PRIME) -- The Russian stock market dropped on Wednesday because of an oil price fall below U.S. $55, while a neutral background prevented larger sell-offs, analysts said.

The MICEX declined 0.40% to 2,170.09 and the RTS fell 0.42% to 1,151.65.

The Russian stock market decreased on a negative external background, according to Finam analyst Bogdan Zvarich. “For instance, the fuel market corrected (downwards), as a result, the Brent oil price fell below the $55 notch, which is negative for Russian securities,” he said.

Otkritie Broker analyst Andrei Kochetkov said: “A strong ruble and an absence of ideas continue to stimulate sluggish sales and a sinking of the ruble-bound index (the MICEX) to stronger support levels.”

According to Yevgeny Loktyukhov, head of Promsvyazbank’s research department, Western stock markets were demonstrating mute dynamics, which was holding down the downward correction trend in Russia.

Economic expectations concerning Russia are sustainably positive, which is preventing investors from starting full-fledged sell-offs of Russian assets despite a negative influence of external factors, Loktyukhov said.

Oil and gas sector shares were among the outsiders of the trading session, safe for Gazprom Neft, which closed with a marginal positive gap of 0.29%, Loktyukhov said.

The electric power sector was growing on the back of a strong ruble, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.45	165.24	7.051
RusHydro	+7.7	1.049	2.792
Gazprom	-0.51	152.86	2.489
Lukoil	-0.28	3224	2.028
Rosneft	-1.2	387.00	1.688

(59.4015 rubles – U.S. $1)

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