Russian stocks decrease as oil prices fall, Trump optimism fades

MOSCOW, Nov 14 (PRIME) -- The Russian stock market decreased on Monday on the back of sliding oil prices and amid a downward correction after an upsurge on the back of Donald Trump’s victory at U.S. presidential elections, analysts said.

The MICEX decreased 0.49% to 2,021.99 and the RTS went down 1.01% to 960.32.

“A certain improvement of the external background has become a stimulus for a positive start of the trade. But an evident weakness of the oil market did not allow local indices to stay afloat,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“This way, we are witnessing continuation of a downward correction which was imminent after a recent emotional rise connected with the U.S. presidential elections result,” he said.

The Brent oil price reached a local minimum of U.S. $44.3 per barrel, which strongly pressurized Russian assets, Bogdan Zvarich, an analyst at investment holding Finam, said.

Federica Mogherini, E.U. foreign policy chief, said that Brussels will retain its strong stance against the Russian policies regardless of any possible U.S.–Russia relation changes, which signifies that the acuteness of the political relations issues remains, Manzhos said.

The negative sentiment of investors from this statement was coupled with worries over information that Russia and Armenia signed an agreement to establish united troops, which has a potential to reignite the Nagorno-Karabakh conflict, he said.

As a result of an oil price decrease, the oil and gas sector fell on Monday, Andrei Kochetkov, an analyst at Otkritie Broker, said.

Sberbank was shedding after a statement by Finance Minister Anton Siluanov, that the bank is not planned to be privatized in 2017, Kochetkov said.

Coal producers kept on rising on the back of increasing coal prices, Manzhos said.

Power makers were growing on expectations of a cold winter, Kochetkov said.

Transaero surged on the news that the board of directors approved a proposal of the shareholders to establish a new airline based on the company, Manzhos said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.73	150.4	7.182
Gazprom	-1.1	146.26	4.662
Norilsk Nickel	+2.27	10380	2.334
Lukoil	-0.91	3064	2.209
Mechel	+13.41	210.83	1.830

(65.2167 rubles – U.S. $1)

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