Russian stocks fall as US economic aid adoption delayed

MOSCOW, Jan 28 (PRIME) -- The Russian stock market closed lower on Thursday on the U.S. failure to adopt an economic program and a tougher quarantine in China, analysts said. 

The MOEX Russia Index fell 0.05% to 3,342.01, and the RTS Index declined 0.60% to 1,384.64.

"The local market followed the external negative trend. The U.S. Federal Reserve System (Fed) did not promise additional measures, and the package to save America is having a hard time in the Congress, while China is extending quarantine ahead of the holidays," Andrei Kochetkov, lead analyst for global research at Otkritie Broker, said.

"All this affects investor risk perception, and they prefer to flee to protective assets." 

Yelena Kozhukhova, analyst at Veles Capital, said that the external background for the Russian stock market trading session was moderately negative. The oil prices lost about 0.5% in the middle of the day; the European stock markets were moderately negative as the Euro Stoxx 50 decreased by 0.4% in the absence of new fundamental signals. The U.S. S&P 500 futures eased by 0.2%.

Kozhukhova said that the Russian market had probably reached a local low and might increase in the future, if the political background is positive, otherwise sales will accelerate.

Polyus decreased 0.85% on the news about a 3% fall in output in 2020. According to Kozhukhova, the company is fundamentally sound, and the share price is defined by gold prices.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.31	264.68	20.125
Gazprom	-0.01	217.38	10.668
Lukoil	+1.46	5580	8.879
Norilsk Nickel	+0.91	25224	6.608
Polymetal	+1.28	1680	2.726

(75.0400 rubles – U.S. $1)

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