Russian stocks drop on dramatic oil price fall, sanctions debates

MOSCOW, Jun 14 (PRIME) -- The Russian stock market closed lower on Wednesday amid investor concerns about the possibility of new U.S. sanctions and crude prices diving to new lows, analysts said.

The MICEX slid 1.23% to 1,838.32 and the RTS fell 1.67% to 1,013.78.

“The MICEX has fallen to another year low … The U.S. Secretary of State Rex Tillerson said during a Senate hearing on new sanctions against Russia that relations between (Russia and the United States) are at their worst and continue to deteriorate,” Gleb Zadoya, head of research department at Analitika Online, said.

He added that further deterioration of relations with the West may result in capital outflow from Russia.

Otkritie Broker analyst Andrei Kochetkov said that oil prices were under pressure after the International Energy Agency had decreased its global oil demand forecast by 60,000 barrel per day. The Brent oil price tested a $47 per barrel mark following a release of better-than-expected oil inventories and production statistics by the U.S. Department of Energy.

Crude companies were among the biggest losers. Bashneft dropped 8.18% to 2,325 rubles and Rosneft declined 2.51% to 304.3 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.05%	143.00	8.400
Gazprom	-2.37%	115.35	5.496
ALROSA	-3.46%	81.00	2.503
Rosneft	-2.51%	304.30	2.452
Lukoil	-1.10%	2,730.00	2.115

(56.9096 rubles – U.S. $1)

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