Russian stocks ease on lack of growth drivers, profit taking

MOSCOW, Sep 6 (PRIME) -- The Russian stock market eased on Wednesday because of a combination of a lack of growth drivers, an unfavorable external background, and profit taking, analysts said.

The MOEX Russia Index fell by 0.58% to 3,245.47 and the RTS decreased by 1.18% to 1,038.58.

“The Russian stock market had been in the red zone since opening on Wednesday as it didn’t find significant drivers to continue growth. The oil prices also provided no support for the leading indices as they were in a downward correction after the Tuesday growth,” Alexander Kovalyov, analyst at investment company Finam, said.

Yevgeny Linchik, head of managing company Pervaya’s department of alternative investment, said the MOEX Russia Index started a slight correction after reaching its high for this year as the global markets fell, while investors were concerned with the upcoming meeting of the Russian central bank’s board of directors.

“Judging by dynamics of the RGBI index, the markets expect another increase of the key rate by more than 1%, and the increase will continue exerting pressure on the stock market,” Linchik said.

Veles Capital’s analyst Yelena Kozhukhova said that news about contraction of retail sales in the Eurozone and industrial orders in Germany in July undermined quotes on the European bourses, the oil price was in a technical downward correction, while the U.S. stock indices fell.

She also said that the shares of Bank Saint Petersburg gained 2.59% to 312.32 rubles prior to a dividend cut-off.

Otkritie Broker’s leading analyst for global Research Andrei Kochetkov said that the Russian metals companies were among the loss leaders in spite of a weak ruble. Weakness of the Chinese economy exerts pressure, while internal demand from construction companies may fall because attractiveness of the government’s cheap mortgage program falls while the central bank increased its key rate, he said.

Novolipetsk Steel (NLMK) lost 2.99% to 193.30 rubles, Severstal fell by 2.88% to 1,370.40 rubles, and Magnitogorsk Iron and Steel Works (MMK) decreased by 2.09% to 53.345 rubles.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Rusolovo	+12.96	1.7593	13.000
Gazprom	-0.64	181.32	7.185
Sberbank	-0.47	263.50	6.847
Tattelecom	+8.32	1.4905	5.675
Lukoil	-0.87	6855.50	4.867

(97.5383 rubles – U.S. $1)

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