Russian stocks decrease on falling oil prices, Brexit concerns

MOSCOW, Jun 16 (PRIME) -- Russian stocks decreased on Thursday pressured by oil prices falling for a sixth consecutive day and risks of the U.K. possible withdrawal from the E.U., or the so-called Brexit, analysts said.

The MICEX fell 1.06% to 1,869.78 and the RTS decreased 1.66% to 895.00.

“After yesterday’s correction, the Russian stock market resumed negative dynamics reflecting a pessimistic foreign background,” InstaForex analyst Igor Kovalyov said.

“Risks of a slowdown of the global economy, risks of the U.K. exiting from the E.U., and a decline in oil prices did not leave any chances to optimists,” Otkritie Broker analyst Andrei Kochetkov said.

Brent oil prices falling to U.S. $47.41 per barrel were the key factor of pressure on Thursday, Forex Club analyst Irina Rogova said. “Oil is under pressure of risks of the U.K. possible withdrawal from the E.U., which can provoke a recession in the eurozone’s economy, which will lead to lower demand for oil,” she said.

Oil and gas companies decreased under pressure of falling oil prices: gas giant Gazprom fell by 1.46%, oil majors Lukoil and Rosneft decreased by 0.51% and 2.03%, respectively, Kochetkov said.

Power utilities were among growth leaders. Wholesale Generating Company-2 (WGC-2) closed 2.97% higher, the Federal Grid Company of Unified Energy Systems (FGC UES) rose by 4.79%, and power holding Inter RAO grew by 1.29%, the analyst said.

Power utility Russian Grids was among growth leaders, having increased by 4.36% on reports that it can pay more interim dividends in 2016 besides those recommended for January–March, Veles Capital analyst Alexander Kosytukov said. The decision can be probably connected with the fact that the company decided not to pay dividends for 2015, he said.

The ruble’s weakening resulted in growth of exporters’ shares: fertilizer producer Uralkali gained 3%, uncut diamond monopoly ALROSA rose 2.61%, and fertilizer makers Acron and PhosAgro increased 1.68% and 1.5%, respectively.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.15	127.10	8.521
Gazprom	-1.46	139.50	4.287
Lukoil	-0.51	2624.00	2.177
Norilsk Nickel	-0.65	8498.00	1.941
Rosneft	-2.03	316.30	1.424

(65.9156 rubles – U.S. $1)

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