Russian stocks edge up on improved geopolitics

MOSCOW, Nov 19 (PRIME) -- Russian stocks edged up on Thursday backed up by improving relations with the West and growth of almost all external trading floors, analysts said.

The MICEX firmed 0.04% to 1,811.20 and the RTS increased 0.83% to 883.82.

“For the first time in more than six months we’ve heard about de-escalation and lifting of sanctions. Of course, it spurred interest to Russian assets from both internal buyers and foreign investors. We will be able to check the theory tomorrow with the EPFR statistics of Russia-dedicated funds,” Sofya Kirsanova, an analyst at investment company Raiffeisen Capital, said.

The current increase of the local market happened due to support of favorable external background, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

“Today, the Russian stock market have maintained the positive trend of this week after receiving support on all fronts. European shares are growing, oil has stabilized above U.S. $44 per barrel, the ruble is rising, and in general players are showing active interest in risky assets after yesterday’s moderately ‘aggressive’ minutes of the U.S. Federal Reserve System’s (Fed) meeting,” Igor Kovalyov, an analyst at InstaForex, said.

On Thursday, the U.S., European and Asian floors all grew thanks to the Fed’s minutes, which said that the regulator will gradually increase its key rate after a switch to toughening of the monetary policy, investment company Olma’s senior analyst Anton Startsev said.

Common and preferred shares of top lender Sberbank rose 0.83% and 0.53%, respectively, and were the main locomotive of the MICEX index’ growth. It is most likely that the shares are rising as bears are now closing short positions, Bank Obrazovanie’s Manzhos said.

Uncut diamond mining giant Alrosa also grew 1.77% in correction after a 3-month contraction due to unfavorable situation at the world diamond market.

Preferred shares of oil company Surgutneftegas lost 1.81%. The shares are usually used as safe haven in times of uncertainty, and now interest to them shrank due to market optimism, Manzhos added.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.83	104.86	20.253
Gazprom	+0.02	147.50	9.120
Lukoil	+0.32	2534.00	3.317
Norilsk Nickel	+0.31	9670.00	3.049
Magnit	+0.60	11427.00	2.388

(64.7785 rubles – U.S. $1)

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