Russian stocks fall as market focuses on falling oil price
MOSCOW, Apr 5 (PRIME) -- The Russian stock market contracted on Monday as investors focused on falling oil prices, analysts said.
The MOEX Russia Index fell 0.94% to 3,524.93 and the RTS decreased 0.65% to 1,457.13.
“The national market started falling from the first minutes of trade. The oil prices exerted pressure (on the market) because they contracted on expectations of rising supply from the OPEC+. The parties of the deal coordinated a step-by-step increase of their production last Thursday, but real demand remains weak,” Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said.
The oil price was also hit by the news that India has set a new daily record of coronavirus cases. The OPEC+ states agreed to start raising production in May, but it looks like the market is unable to stomach the additional oil, Kochetkov said.
The oil price fell by 3.145% to U.S. $62.82 per barrel as of 6.16 p.m. Moscow time, according to the ICE exchange.
Yelena Kozhukhova, analyst at Veles Capital, also said that the Russian market followed the oil price.
“In the coming days, the negotiations between Iran and other countries on its nuclear program will be of importance for the oil market besides publication of the traditional data on reserves and macroeconomic signals. Possible improvements of relations and prospects of higher exports of Iranian oil could become a negative signal for oil prices,” Kozhukhova said.
Alexander Osin, head of investment company Freedom Finance’s department for operations on the Russian stock market, said that shares of electronic goods and household appliances retailer M.Video-Eldorago Group gained 0.14% to 724 rubles following the board of director’s recommendation to pay 38 rubles per share in dividends for 2022, driving the total dividend payout for the year to 6.8 billion rubles.
Shares of real estate developer PIK Group lost 3.01% to 891.60 rubles as investors were displeased with the recommendation of the board of directors to pay 45.43 rubles per share in dividends for 2020 and for January–March 2021, Osin said.
Below are the MOEX Russia Index’ five most active stocks on Monday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Sberbank | -1.00 | 288.79 | 9.340 |
| Norilsk Nickel | -0.34 | 23780.00 | 6.520 |
| Gazprom | -1.70 | 224.52 | 4.855 |
| Lukoil | -2.02 | 5985.00 | 4.575 |
| VTB | +3.24 | 0.044245 | 2.803 |
(76.0734 rubles – U.S. $1)
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MOSCOW, Apr 5 (PRIME) -- The Russian stock market contracted on Monday as investors focused on falling oil prices, analysts said.
The MOEX Russia Index fell 0.94% to 3,524.93 and the RTS decreased 0.65% to 1,457.13.
“The national market started falling from the first minutes of trade. The oil prices exerted pressure (on the market) because they contracted on expectations of rising supply from the OPEC+. The parties of the deal coordinated a step-by-step increase of their production last Thursday, but real demand remains weak,” Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said.
The oil price was also hit by the news that India has set a new daily record of coronavirus cases. The OPEC+ states agreed to start raising production in May, but it looks like the market is unable to stomach the additional oil, Kochetkov said.
The oil price fell by 3.145% to U.S. $62.82 per barrel as of 6.16 p.m. Moscow time, according to the ICE exchange.
Yelena Kozhukhova, analyst at Veles Capital, also said that the Russian market followed the oil price.
“In the coming days, the negotiations between Iran and other countries on its nuclear program will be of importance for the oil market besides publication of the traditional data on reserves and macroeconomic signals. Possible improvements of relations and prospects of higher exports of Iranian oil could become a negative signal for oil prices,” Kozhukhova said.
Alexander Osin, head of investment company Freedom Finance’s department for operations on the Russian stock market, said that shares of electronic goods and household appliances retailer M.Video-Eldorago Group gained 0.14% to 724 rubles following the board of director’s recommendation to pay 38 rubles per share in dividends for 2022, driving the total dividend payout for the year to 6.8 billion rubles.
Shares of real estate developer PIK Group lost 3.01% to 891.60 rubles as investors were displeased with the recommendation of the board of directors to pay 45.43 rubles per share in dividends for 2020 and for January–March 2021, Osin said.
Below are the MOEX Russia Index’ five most active stocks on Monday:
| Company | Change, % | Last price, rbl | Trading volume, bln rbl |
|---|---|---|---|
| Sberbank | -1.00 | 288.79 | 9.340 |
| Norilsk Nickel | -0.34 | 23780.00 | 6.520 |
| Gazprom | -1.70 | 224.52 | 4.855 |
| Lukoil | -2.02 | 5985.00 | 4.575 |
| VTB | +3.24 | 0.044245 | 2.803 |
(76.0734 rubles – U.S. $1)
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