Russian stocks edge down on negative environment, oil price fall

MOSCOW, Jun 9 (PRIME) – Russian stocks fell on Thursday following negative dynamics of all foreign bourses and a contraction of the oil price, analysts said.

The MICEX fell 0.85% to 1,934.92 and the RTS decreased 1.50% to 950.86.

“Sellers dominated on the Russian stock market on Thursday. The mood of players was undermined by an unfavorable external background as all foreign floors were in the red zone today. The downward correction of oil prices also favored the sales,” Igor Kovalyov, an analyst at InstaForex, said.

The Brent oil price decreased 0.768% to U.S. $52.11 per barrel as of 6.08 p.m. Moscow time, according to the ICE exchange.

“But there was also bad news, as the U.S. oil production increased last week. It is another reminder that the shale oil market, which fell into hibernation when oil prices were low, is starting to wake up,” Dirgin said.

The ruble was under pressure from the falling oil price, which resulted in a more significant weakening of the U.S. dollar–denominated RTS index, Irina Rogova, an analyst at Forex Club group of companies, said.

“But the falling oil is the only negative factor for the Russian currency. The Friday meeting of the central bank’s board of directors does not worry the national currency. Even if the regulator decides to cut the key rate, it will most likely be a symbolical 0.25–0.5 percentage point cut. A deeper cut may increase inflationary risks, and the central bank doesn’t need that,” Rogova said.

Oil company Tatneft lost 3.65% to 319.40 rubles on a report that its net profit under International Financial Reporting Standards fell 33.7% on the year to 17.621 billion rubles in January–March, Kovalyov said.

Agricultural company Razgulay Group was once again among the losers and plunged 15.24% to 4.17 rubles on speculations and rumors regarding a bankruptcy suit filed by agricultural holding Rusagro, one of Razgulay’s key owners and creditors, against the company, Kovalyov added.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.16	139.61	7.862
Magnit	-4.02	8830.00	3.846
Gazprom	-1.34	144.98	2.744
VTB	+1.39	0.07300	2.024
Norilsk Nickel	-1.96	8699.00	1.767

(64.6797 rubles – U.S. $1)

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