Russian stocks fall as hopes for 50% state cos’ divs undermined

MOSCOW, Feb 27 (PRIME) -- The Russian stock market decreased on Monday because information about lower-than-expected dividends of power grid company Rosseti casts doubt on promises for 50% of net profit payouts by state-run companies, while expectations related to presidency of U.S. Donald Trump have almost disappeared, analysts said.

The MICEX decreased 1.75% to 2,056.46 and the RTS fell 1.05% to 1,117.29.

“In general, the Russian market was decreasing under the pressure of a strong ruble and loss of hopes for an increase in dividend payments by state companies,” Andrei Kochetkov, an analyst at Otkritie Broker said.

Business daily Kommersant reported that the Energy Ministry offers to limit dividends of power grid company Rosseti to 25% of its net profit until 2018. This information dispelled earlier promises that all state companies will pay 50% of their net profit in dividends, starting from 2017, Kochetkov said.

He also said that the MICEX was erasing the gains of an earlier rally, when Donald Trump took U.S. presidency. Hopes connected with his election are vanishing, Kochetkov said.

InstaForex analyst Igor Kovalyov said that an escalation of tensions in the east of Ukraine makes the prospects of lifting of anti-Russia sanctions even more doubtful.

The Brent price reached U.S. $56.5 per barrel, which according to Finam analyst Bogdan Zvarich was not enough to make the Russian market trend positive.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.76	160.95	6.832
Gazprom	-1.23	135.07	3.266
Rosneft	-3.48	331.05	2.830
FGC UES	-8.83	0.206	1.923
Lukoil	-1.54	3135	1.718

(57.4762 rubles – U.S. $1)

End