Russian stocks decrease on aggressive rocket comments

MOSCOW, Jan 17 (PRIME) -- The Russian stock market decreased on Monday despite rising oil prices on government officials’ comments about possible deployment of missiles in Europe, analysts said.

The MOEX Russia Index fell by 1.02% to 3,560.35 and the RTS decreased by 0.73% to 1,474.99.

Andrei Kochetkov, leading analyst for global analysis at Otkritie Research, said that Russian Foreign Minister Sergei Lavrov’s comment that Russia was ready to ensure its security on its own if negotiations with the West fall through and presidential spokesman Dmitry Peskov’s unwillingness to deny or confirm the possibility of placing rockets in other countries made the market situation uncertain.

“It is obvious that this is the trigger for sales for both foreigners and local players,” he said.

Yevgeny Linchik, head of the stock management department at Sber Asset Management, also said that appetite for Russian assets is dwindling.

“The Russian stock market started the trading session with an attempt to grow, but switched into the red zone later in spite of a holiday in the U.S. and in spite of support from the oil prices,” he said.

“Volatility on the Russian bourses will continue in the next few weeks and months due to the geopolitical situation.”

Dmitry Babin, stock market expert at BCS World of Investment, said that the geopolitical factor creates uncertainty and high country risks.

“This is why foreign investors are running from the Russian shares and bonds to foreign currencies stemming a more serious downward correction. This is why other drivers are secondary for us,” Babin said.

Kochetkov also said that the Russian financial sector experienced the heaviest pressure because it was the Russian banks that were mentioned as the target of possible new U.S. sanctions. Top bank Sberbank fell by 1.49% to 257.10 rubles.

At the same time, the IT sector rose thanks to a rebound of internet giant Yandex and marketplace Ozon, which grew 3.30% to 4,068.40 rubles and 4.13% to 1,830 rubles, respectively, he said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.49	257.10	55.952
Gazprom	-2.52	327.30	28.395
Lukoil	-2.20	6512.50	9.712
Norilsk Nickel	-3.66	21818.00	8.185
Yandex	+3.30	4068.40	6.846

(75.7668 rubles – U.S. $1)

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