Russian stocks edge up on hopes for sanctions pause, new signals

MOSCOW, Jun 1 (PRIME) -- The Russian stock market slightly increased on Wednesday on hopes for a sanctions pause and new signals after the announcement of the sixth package of the E.U. sanctions that was already factored in the previous sessions, analysts said.

The MOEX Russia Index grew by 0.80% to 2,374.60 and the RTS index increased by 1.16% to 1,222.18.

“The Russian stock market managed to slightly grow despite the option of short selling … probably in anticipation of the appearance of new meaningful signals after the announcement of a new package of European sanctions,” Veles Broker analyst Yelena Kozhukhova said.

The positive dynamics can be attributed to hopes for another sanctions pause, she also said, adding that the technical picture of the market did not change that may show continuing uncertainty and indecision of investors.

The U.S. and the E.U. markets showed moderately negative sentiments on the lack of drivers for purchases and inflation fears, Kozhukhova said.

Promsvyazbank’s senior analyst Yegor Zhilnikov said that the investors were mostly interested in the speculative stock and oversold shares of the financial sector. As of the sixth package of sanctions imposed on Tuesday, it was already factored in during the last three trading sessions.

Sberbank grew 3.1% and the rise is a good signal that may show investors’ trust in the stock despite tough sanctions against the bank, Kozhukhova said.

The preferred stocks of Mechel lost 23.6% on the announcement that the board of directors recommended no dividends for 2021, Algo Capital senior risk manager Vitaly Manzhos said.

The preferred stocks of Transneft rose 5.01% as the board of directors recommended paying dividends for 2021, Freedom Finance analysts said.

CIAN’s stocks grew 6.16% that can be attributed to the central bank’s statement that restrictions on the trade in foreign stocks will not apply to the Russian issuers, Freedom Finance analysts said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	+1.34	297.69	6.703
Sberbank	+3.10	121.97	5.297
Mechel prefs	-23.6	162.5	2.412
Lukoil	+0.31	4074	1.522
Norilsk Nickel	+1.12	20416	0.765

(61.6069 rubles – U.S. $1)

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