Russian stocks fall as US reserve, output data depress oil prices

MOSCOW, Jul 13 (PRIME) -- Russian stocks decreased on Wednesday because oil prices fell sharply after data on U.S. oil output and reserves was released, analysts said.

The MICEX fell 0.13% to 1,935.88 and the RTS decreased 0.32% to 952.37.

“Brent crude oil was under pressure again today. In part, this is due to profit taking after yesterday’s rise of 5%. Moreover, EIA’s data on commercial oil reserves failed to meet expectations again. The figure fell by 2.55 million barrels, while a decrease by 2.95 million was projected. What is more, U.S. output rose last week that was generally expected because the number of operating drilling rigs in the country is rising,” Forex Club analyst Irina Rogova said.

Raiffeisen Capital analyst Sofya Kirsanova said the higher number of operating drilling rigs means that shale oil companies are ready to resume production with current prices.

Top Russian lender Sberbank fell 0.71% to 139.4 rubles on the back of a weaker ruble. The national currency fell against the U.S. dollar to about 64 by the closing bell.

Metals companies were an investors’ haven amid lower oil prices, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said. Nickel producer Norilsk Nickel rose 3.05% to 9,300 rubles, Magnitogorsk Iron and Steel Works (MMK) increased 3.5% to 26.6 rubles and Novolipetsk Steel (NLMK) grew 1.2% to 87.84 rubles.

MMK was additionally supported by strong operating results for April–June and January–June, Manzhos said.

Uncut diamond mining giant ALROSA rose 2.92% to 71.2 rubles, because the volume of the company’s free float increased, Manzhos said.

Real estate developer LSR Group, which posted weak financial results for January–March under Russian Accounting Standards (RAS), rose 2.26% to 860.5 rubles. Investors expect it will publish strong operating results after another developer Etalon Group said its new contract sales nearly tripled on the year to 23.143 billion rubles in January–June, according to Kirsanova.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-0.71	139.40	11.937
Gazprom	+1.04	143.60	4.009
Norilsk Nickel	+3.05	9300.00	3.837
ALROSA	+2.92	71.20	2.463
Surgutneftegas pref	+0.27	40.99	2.014

(63.9029 rubles – U.S. $1)

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