Russian stocks edge up on slower US inflation

MOSCOW, Nov 15 (PRIME) -- The Russian stock market grew on Wednesday as the mood was supported by the news of stronger than expected slowdown of the U.S. inflation, while the ruble’s growth slightly undermined the MOEX Russia Index and spurred up the RTS Index growth, analysts said.

The MOEX Russia Index rose 0.06% to 3,215.11 and the RTS increased 1.55% to 1,134.24.

Alexei Kalachyov, analyst at investment company Finam, said that the external background was favorable for the Russian market.

“The majority of the stock markets reacted with a noticeable growth to the slowdown of the U.S. inflation that turned out to be more significant than expected. The chances that the U.S. Federal Reserve System will raise its rates again until the end of this year have become negligible,” he said.

The futures for the U.S. indices were in the green zone, and the Asian bourses grew as well. China published a slew of robust economic statistics, and investors in the Chinese shares were pleased with the upcoming meeting of Chinese President Xi Jinping and U.S. President Joe Biden. The European markets priced in the slowdown of inflation in the region as well, Kalachyov said.

The RTS Index outperformed the MOEX Russia Index mainly because of the ruble’s strengthening, he said.

Veles Capital analyst Yelena Kozhukhova also said that the external background added some positive momentum to the Russian trade, but that the national market was under the influence of the rising ruble.

“Nevertheless, the oil futures showed no growth recovery as they reflected concern about restricted demand for the black gold,” Kozhukhova said.

She also said that the shares of metals and mining group Mechel gained 3.18% to 325.34 rubles in an upward correction after a couple of days of sales.

Oil major Rosneft lost 0.30% to 589.55 rubles regardless of the board of directors’ recommendation to pay 30.77 rubles per share in dividends for January–September. The dividend yield stands at 5.2%, which is less attractive that 9.7% the company’s competitor Gazprom Neft offers. Also, Rosneft’s shares are close to the psychologically important level of 600 rubles, and the impact of the two factors stopped purchases, she said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.59	282.52	10.866
Mechel	+3.18	325.34	9.549
Lukoil	+0.46	7233.00	3.987
Raspadskaya	+0.74	413.00	3.927
Transneft prefs	+1.63	146200.00	2.953

(91.2570 rubles – U.S. $1)

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