Russian stocks decrease on MegaFon dive, flat oil market

MOSCOW, Aug 30 (PRIME) -- The Russian stock market closed in the red zone on Thursday pummeled by telecom company MegaFon, while a combination of marginal dynamics of the oil market and attempts of the ruble to strengthen provided no support, analysts said.

The MOEX Russia Index decreased 0.75% to 2,330.92 and the RTS Index fell 0.87% to 1,075.55.

“The Russian market again has problems with growth ideas. MegaFon’s dive by 18.8% on the back of exclusion from the key indices of the Moscow Exchange after the company’s free floating fell 2% was obviously negative during the day,” Andrei Kochetkov, an analyst at Otkritie Broker, said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that MegaFon’s decrease was partially triggered by information that two executives sold their entire stakes in the company.

Kochetkov said that the European markets fell as optimism from the NAFTA talks faded, and the oil market traded flat.

The preferred shares of Transneft continued to decrease after publication of a financial report on Tuesday and fell 3.8%, reaching a low since October 2016, Kochetkov said.

Manzhos said that Aeroflot soared and the trade volume increased after a U.S. investment bank changed its recommendation on the stock to Hold from Sell.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-3	178	12.020
Lukoil	+1.37	4702	3.230
Gazprom	-1.28	145.98	2.529
Aeroflot	+3.31	115.5	1.997
Novatek	-1.11	1099.5	1.639

(68.1451 rubles – U.S. $1)

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