Russian stocks decrease on Gazprom news, oil price fall

MOSCOW, Feb 8 (PRIME) -- The Russian stock market declined on Thursday as executives of Gazprom disappointed market participants by statements during an investor day, and the Brent oil price fell to about U.S. $65 per barrel, analysts said.

The MOEX Russia Index fell 1.22% to 2,227.24 and the RTS index decreased 2.56% to 1,210.69.

“There are several displeasing issues for the Russian market. Firstly, Oracle has changed the terms of software provision to Russian oil and gas sector companies. Secondly, Gazprom will not surprise the market with dividend or net profit growth in the years to come, and will consider buying back shares only after completion of large-scale projects,” Andrei Kochetkov, an analyst at Otkritie Broker, said. The news that Gazprom will build the TurkStream gas pipeline at own expense was also a disappointment, he added.

Kochetkov said that the oil price decline to a level of about $65 per barrel is pressurizing the Russian market as well.

As a result, the oil and gas sector pulled down the entire Russian market, he said.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the RTS index was decreasing at a faster pace on the back of weakening of the ruble.

He said that Bank Vozrozhdenie grew on the news that Suleiman Kerimov is in talks to buy the bank.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.7	253.19	9.527
Gazprom	-2.7	137.2	5.940
Lukoil	-1.31	3686	3.737
ALROSA	+2.86	86.4	3.137
Magnit	+2.12	4825	2.654

(56.9533 rubles – U.S. $1)

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