Russian stocks edge down on fear of inflation, external factors

MOSCOW, Nov 10 (PRIME) -- The Russian stock market fell on Wednesday amid downward trend on foreign markets, as well as fears of imminent risks entailed by inflation, analysts said.

The MOEX Russia Index dropped 0.35% to 4,172.37 and the RTS decreased 0.57% to 1,853.64.

The relatively negative external background took the MOEX Russia Index into the red zone, as negative sentiment was supported by inflation risks, Andrei Kochetkov, expert at Otkritie Research, said.

Data on Chinese and American inflation was on the investors’ agenda today, Yevgeny Linchik, chief analyst at Sber Asset Management, said. In addition, the news from the real estate market, and especially Evergrande’s failure to carry out coupon payments of U.S. $148.1 million, brought extra negativity to Asian platforms. Inflation accelerated again in the U.S. inflation to 6.2% on the year as compared to the forecast of 5.8% growth.

“Restrained profit taking, fueled by inflation fears, prevailed on global stock exchanges. (The Russian) market was trying to figure out whether to wait for additional drivers from the commodity markets or the global risk aversion in conditions of high inflation will prevail,” Yelena Kozhukhova of Veles Capital said.

According to Yegor Zhilnikov of PSB Bank, the most pressure on the market was exerted by the financial sector companies, which are most exposed to inflationary concerns. The shares of real estate developers traded in the negative area, which continued their downward trend. Shares of metallurgical and mining sector also looked weak today.

 “The MOEX Index updated its November low, remaining under additional pressure from the strong ruble, … and oil prices sagged,” Dmitry Babin of BCS Investment Group said, noting that “the external background deteriorated, provoking downward momentum on the Russian stock market.”

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.13	353.4	14.248
Gazprom	+0.15	350	8.821
Norilsk Nickel	-1.38	21882	5.967
Lukoil	+0.42	7218.5	3.927
TCS Group	-3.83	7678	3.816

(71.2866 rubles – U.S. $1)

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