Russian stocks drop amid falling oil, pessimism on global floors

MOSCOW, Oct 8 (PRIME) -- Russian stocks decreased on Tuesday pressured by falling oil prices, negative moods on global floors, with growing concerns about the U.S.–China talks, and the ruble’s depreciation, analysts said.

The MOEX Russia Index fell 0.42% to 2,707.89 and the RTS Index decreased 1.05% to 1,306.39.

“The MOEX Russia Index and the RTS Index remained in minus by the end of trading on Tuesday having received no support from the foreign background,” Veles Capital analyst Yelena Kozhukhova said.

Trading on the U.S. stock floors started with a decline of three main indices, which lost around 1% by the end of trading in Russia. Investors are worried that the next round of trade talks with China, which will start on Thursday, will not bring results. Trading on European floors was on a downbeat note.

Oil prices remained in minus by the evening, but were losing less than 0.5% amid investors’ doubts about prospects of the global economy development and demand for oil, Kozhukhova said.

Otkritie Broker analyst Andrei Kochetkov said the Russian stock market was pressured by the negative foreign background. “Doubts about a positive outcome of the U.S.–China trade talks are growing. In Europe, expectations that the U.K. will leave the E.U. without an agreement are intensifying,” he said.

Gold producer Polymetal was among growth leaders, rising by 2.84%, Kozhukhova said. Coal producer Raspadskaya added 2.35% after reporting that its net profit rose almost 50% on the year to 9 billion rubles in January–September, as calculated under Russian Accounting Standards (RAS).

Retailer Magnit and power holding Inter RAO were among outsiders, losing 1.86% and 1.24%, respectively.  

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.67	226.03	7.020
Gazprom	-1.4	223.20	4.991
Lukoil	-0.88	5320.00	2.919
Magnit	-1.86	3292.50	1.658
Norilsk Nickel	-0.11	16030.00	1.636

(64.8259 rubles – U.S. $1)

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