Russian stocks fall as external background worsens

MOSCOW, Apr 19 (PRIME) -- The Russian stock market contracted on Wednesday because the unfavorable external background supported only the sellers today, analysts said.

The MOEX Russia Index fell 0.35% to 2,606.55 and the RTS decreased 0.62% to 1,004.59.

“The Russian stock market switched into the red zone in the second half of the day … The Russian market fell as the external background worsened with the futures for the S&P 500 index losing more than 0.4%,” Vladimir Lyashchuk, senior analyst at Promsvyazbank said.

Yevgeny Linchik, head of the alternative investment department of managing company Pervaya, also said that the external background prompted a downward correction of the Russian market.

“The oil prices fell, and the foreign stock markets mood was pessimistic. Nevertheless, the MOEX Russia Index maintained the position above 2,600, while the RTS Index stayed above 1,000,” Linchik said.

Freedom Finance Global analyst Natalya Milchakova said that the European investors were unhappy about inflation in the U.K., which stayed above 10% in March in spite of expectations. The contraction of oil prices by over 2% exerted additional pressure on the Russian securities, she said.

The shares of oil company RussNeft lost 3.49% to 140.90 rubles as the securities are vulnerable to short-term changes in the oil prices. But the preferred shares of oil company Bashneft gained 7.64% to 1,057 rubles on expectations of dividends, she said.

Far-Eastern Shipping Company rose by 5.06% to 47.73 rubles on the news that the company will buy terminals in the European part of Russia and six new ships with the cost totaling 20 billion rubles, Milchakova said.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	+0.49	233.80	24.947
Gazprom	-1.18	182.21	7.956
Mechel	+0.60	197.36	7.717
Lukoil	-1.08	4550.00	5.126
VTB	+0.82	0.01957	3.855

(81.6028 rubles – U.S. $1)

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