Russian stocks erase losses on oil price growth, rising foreign mkts

MOSCOW, Aug 8 (PRIME) -- The Russian stock market corrected upwards on Thursday on the back of a partial recovery of oil prices and a positive trend on the foreign markets, analysts said.

The MOEX Russia Index grew 0.81% to 2,696.69, and the RTS Index increased 1.47% to 1,303.80.

“On Thursday, the Russian stock market demonstrated confident recovery, the MOEX Russia Index traded above 2,700 in the middle of the day. The recovery we see was mainly caused by the return of optimism on the foreign markets, recovery oil prices and a switch of the sanction rhetoric in the news to a sleeping mode,” BCS Premier investment strategist Alexander Bakhtin said.

He said that the Asian markets grew on the news that Chinese exports rose 3.3% in July above forecast, while imports fell less than the forecast.

Oil prices rose to U.S. $57 per barrel on the news that Saudi Arabia started negotiations in the framework of OPEC in order to restore crude prices, Bakhtin said.

Otkritie Broker’s senior analyst Andrei Kochetkov said that the global market calmed down after statements by two representatives of the U.S. Federal Reserve System (Fed), signaling that the key rate can be reduced by the end of 2019.

According to Bakhtin, Norilsk Nickel grew on the back of rising nickel futures on rumors about prohibition of exports from Indonesia.

VTB was under pressure after reporting a fall in January–June net profit, while investors also paid attention to fall of interest rates on the market, which negatively affects the profitability of the banking business, Bakhtin said.

Kochetkov said that Gazprom continued rallying on rumors that the company can sell another 3.7% stake of quasi-treasury shares.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.76	223.93	7.020
Gazprom	+1.55	231.21	6.874
Lukoil	+1.11	5268	5.336
Norilsk Nickel	+2.61	15084	4.876
VTB	+0.37	0.041	2.384

(65.0932 rubles – U.S. $1)

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