Russian stocks ease on dividend cancellations, weaker ruble

MOSCOW, Jul 4 (PRIME) -- The Russian stock market contracted on Monday mainly under the impact of local corporate stories and a weakening of the ruble’s exchange rate, analysts said.

The MOEX Russia Index fell 0.09% to 2,204.66 and the RTS decreased 2.16% to 1,249.00.

“Moderate purchases prevailed on the foreign stock floors on Monday, while the Russian market was hesitant because of mixed dynamics of some issuers. The MOEX Russia Index stayed above the mid-term support of 2,190, while the RTS Index fell to the lowest level since mid-July as the ruble weakened,” Veles Capital’s analyst Yelena Kozhukhova said.

Real estate developer PIK Group lost 4.87% to 742 rubles, shipping company Sovcomflot decreased by 3.82% to 40.49 rubles, and fertilizer producer PhosAgro shrank by 1.38% to 7,692 rubles. The shareholders of the first two companies were to reject dividends for 2021, while PhosAgro’s owners went against the directors’ recommendation and unexpectedly cancelled the dividends, Kozhukhova said.

Yevgeny Linchik, head of the stock management department of managing company Pervaya, said that the market should continue to trade mixed as the news flow provides no significant drivers, making the market players focus on corporate stories.

Investment company Freedom Finance also said in a research note that the ruble fall resulted in the MOEX Russia Index outperforming the RTS Index significantly.

TCS Group and VTB Bank were among the gain leaders rising by 8.11% to 2,012 rubles and 5.97% to 0.01855 rubles, respectively. Investors expecti the banks to show outstanding financial performance, Freedom Finance said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-3.25	186.25	15.536
Sberbank	+1.17	131.43	6.244
Novatek	-3.32	1025.00	1.979
Lukoil	+0.14	3949.50	1.688
Polyus	-5.51	7997.50	1.362

(53.7676 rubles – U.S. $1)

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