Russian stocks fall as new coronavirus spreads in China

MOSCOW, Jan 15 (PRIME) – The Russian stocks contracted on Friday as a new coronavirus spread fast in China and quarantine restrictions, analysts said.

The MOEX Russia Index fell 1.14% to 3,450.95 and the RTS decreased 1.75% to 1,474.28.

“After showing mixed dynamics in the first half of the trading session, the Russian stock indices spent the second half of the day in the red zone due to worsening external background,” Veles Capital analyst Yelena Kozhukhova said.

The oil prices fell by 1.5% in the evening due to strengthening of the U.S. dollar and investor concerns about a fast spread of a new coronavirus in China. The futures for the U.S. stock indices contracted prior to the start of trade in the country as investors will likely take profit after the announcement of a large-scale economic stimulus plan by U.S. President-elect Joe Biden. The European bourses also fell, Kozhukhova said.

“Again the MOEX Russia Index tried to hold above 3,500 after reaching 3,509.24, which is above yesterday’s peak. But the purchasing drive fizzled out, and the index slid in the middle of the day,” Otkritie Broker’s senior analyst for global research Andrei Kochetkov said.

Decreasing European indices supported negative dynamics of the Russian market. The European investors started to sell following the release of the World Health Organization’s warning that the coronavirus threat may be more serious in 2021, and several European countries confirmed that by prolonging quarantines. The U.K also disappointed investors, as its economy shrunk by 2.6% in November 2020, and it may shrink even further in December as the government did not suspend the quarantine, Kochetkov said.

Russia’s top bank Sberbank fell by 2.80% to 276.82 rubles as the net profit calculated under Russian Accounting Standards fell by 7.7% in 2020. Kochetkov said.

But global depositary receipts of TCS Group, which comprises Tinkoff Bank and Tinkoff Insurance, outperformed the market and grew 8.70% to 3,270 rubles. Investors are still pricing in the company’s plans to change the ownership structure, which may lead to higher shares in different indices and to productive talks on merger and acquisition, he added.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-2.80	276.82	19.309
Gazprom	-1.25	226.00	11.719
Lukoil	-0.62	5900.00	10.505
Rosneft	+1.84	514.30	8.668
Norilsk Nickel	-2.73	25710.00	5.519

(73.7961 rubles – U.S. $1)

End