Russian stocks fall as environment worsens, oil prices fall

MOSCOW, Oct 22 (PRIME) -- Russian stocks contracted on Monday due to worsening of the external background and a decrease of oil prices, analysts said.

The MOEX Russia Index fell 1.55% to 2,308.56 and the RTS decreased 0.92% to 1,116.56.

“The list of growing shares on the Russian market contracted significantly on Monday evening. A worsening external background and a switch of trade in oil prices into the red zone played their parts in that,” Alor Broker said in a research note.

The Russian market followed the U.S. stock market that fell at Monday’s opening due to the tensions about Brexit and Italy’s financial situation, the research note read.

The Brent oil price fell 0.67% to U.S. $79.21 per barrel as of 5.41 p.m. Moscow time, according to the ICE exchange.

Yelena Kozhukhova, Veles Broker’s analyst, said that oil prices fell under the pressure of drilling activity in the U.S. that grew over the past week. “At the same time, the U.S. authorities said that it would be tough for other countries to bypass the Iranian sanctions and get oil from the Islamic Republic,” she said.

Early in the day, shares of Russian Internet giant Yandex rose by about 7% as rumors about a possible purchase of a stake in the company by top bank Sberbank were denied. But later the parliament’s lower house State Duma received a bill that may limit the share of foreign ownership in national news aggregators at 20% forcing Yandex to change its ownership structure. The company finished the day with a 2.09% loss.

Alor Broker also said that retailer Magnit fell by 2.35% as the company reported a 10% increase in its July–September net profit, which was below market expectations.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.53	180.99	16.885
Yandex	-2.09	1752.50	5.819
Gazprom	-3.36	155.90	4.003
Lukoil	-0.38	4675.00	1.558
Norilsk Nickel	-0.76	11291.00	1.515

(65.8140 rubles – U.S. $1)

End